Star­board to push for con­trol of board in Ya­hoo talks

The Pak Banker - - COMPANIES/BOSS -

Star­board Value LP, the ac­tivist hedge fund lead­ing an in­vestor re­volt against Ya­hoo Inc.'s man­age­ment team, will push for con­trol of the com­pany's board in talks sched­uled for next week, ac­cord­ing to peo­ple fa­mil­iar with the mat­ter.

The talks be­tween the two sides rep­re­sent an ef­fort by the In­ter­net com­pany to avoid a proxy con­test just weeks be­fore a 26 March dead­line for Star­board and other share­hold­ers to sub­mit board of di­rec­tor nom­i­nees. Star­board is seek­ing at least four board rep­re­sen­ta­tives in or­der to gain con­trol of Ya­hoo's seven-mem­ber board, the peo­ple said this week. Ya­hoo's board has been weigh­ing whether to of­fer two or more seats to Star­board, the New York Post has re­ported.

Should talks fail, Star­board pre­vi­ously said it was pre­pared to sub­mit a slate of di­rec­tors.

A proxy con­test would come as Ya­hoo presses ahead with an auc­tion for its core In­ter­net busi­ness. Some Ya­hoo in­vestors are con­cerned that a proxy fight would hin­der the auc­tion ef­fort, sow­ing doubts among po­ten­tial buy­ers over the sta­bil­ity of Ya­hoo's board, the sources said.

Star­board, how­ever, does not want to miss an op­por­tu­nity to gain board seats, one of the sources added. The sources asked not to be iden­ti­fied be­cause the de­lib­er­a­tions are con­fi­den­tial. Ya­hoo and Star­board de­clined to com­ment.

Bou­tique bank Ever­core Part­ners Inc. has been re­tained to help de­fend against Star­board's cam­paign, in ad­di­tion to ex­ist­ing ad­vi­sors Gold­man Sachs Group Inc., JPMor­gan Chase & Co. and PJT Part­ners Inc., peo­ple fa­mil­iar with the mat­ter said.

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