Star­board to launch proxy fight to re­move Ya­hoo's en­tire board

The Pak Banker - - COMPANIES/BOSS -

NE WYORK: Ac­tivist hedge fund Star­board Value LP, which is lead­ing an in­vestor re­volt against Ya­hoo Inc's man­age­ment team, is seek­ing to re­move the en­tire board of the strug­gling In­ter­net com­pany, the Wall Street Jour­nal re­ported. The ac­tivist in­vestor, which owns about 0.75 per­cent of Ya­hoo, plans to an­nounce Thurs­day morn­ing that it will nom­i­nate nine direc­tors to Ya­hoo's board, the Jour­nal said, cit­ing a Star­board let­ter. "The board and man­age­ment have con­tin­u­ally failed to live up to their own prom­ises and shouldn't be trusted with the de­ci­sion on whether Ya­hoo should re­main an in­de­pen­dent com­pany," the pa­per re­ported, cit­ing the let­ter. Star­board has been push­ing for changes at Ya­hoo since 2014, ask­ing it to sep­a­rate its Asian as­sets and sell the core busi­ness. Reuters re­ported on March 4 that Ya­hoo ex­ec­u­tives would meet this month with Star­board Value. The two sides will dis­cuss whether they can come to an agree­ment in or­der to avoid a proxy fight for con­trol of Ya­hoo. Share­hold­ers have un­til March 26 to sub­mit nom­i­na­tions for board mem­bers to be elected at Ya­hoo's an­nual meet­ing this spring. Star­board has said it is will­ing to launch a proxy fight with its own nom­i­na­tions. Telecom­mu­ni­ca­tions com­pany Ver­i­zon Com­mu­ni­ca­tions Inc and pub­lisher Time Inc are among the com­pa­nies ex­pected to bid for Ya­hoo's core busi­ness.

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