LAURIA: On the same day that potential Yahoo buyers faced a deadline to sign confidentiality agreements, co-founder Jerry Yang came under a fresh attack from an activist shareholder who demanded his resignation.
In a letter to Yahoo's board, Daniel Loeb, chief executive officer of hedge fund Third Point LLC, said he was "deeply concerned" Yahoo is looking at deals that will allow private equity firms to gain substantial equity positions in the company.
"More troubling are reports that Mr. Yang is engaging in one-off discussions with private equity firms, presumably because it is in his best personal interests to do so," added Loeb.
According to a Reuters report from early October, which cited multiple sources, Yang was exploring a deal with private equity firms to take Yahoo off the public markets in part because that would represent his best chance of remaining involved with the company.
Loeb, who is seeking two board seats at Yahoo through either the resignation of Yang and chairman Roy Bostock or by the creation of new seats, said that Yang needs to clearly state whether he is a buyer or seller.
"He cannot be both," Loeb wrote. "If we are correct and he is effectively a buyer, corporate ethics require him to recuse himself from any further discussions on behalf of the company."
Two of Yang's confidantes didn't disagree with Loeb. "We're all sitting here wondering how Jerry is able to do this, he's totally conflicted," said a Yang confidante who asked not to be identified talking about his friend. "The board should be concerned about getting the best price not how Jerry can stay in control but instead it's the opposite."
A Yahoo representative said in a statement that the board's strategic review is being "properly managed for the benefit of all shareholders."
The statement went on to say that, "Mr. Yang is one of nine directors with the exact same fiduciary duties and motivation as all of his fellow directors--to serve the best interests of all the company's shareholders."
PROGRESS ON A DEAL Yahoo set a deadline of Friday for potential buyers to sign a confidentiality agreement to be allowed a close look at its finances, according to people familiar with the matter.
After initially balking at its restrictive terms, several parties relented and signed the agreement by the deadline, which could be extended into next week to provide more time for other firms to sign on, these people said.
Still, at least five of the private equity firms interested in Yahoo--Silver Lake Partners, Providence Equity Partners, Bain Capital, Hellman & Friedman and Blackstone--have not yet signed the agreement, several people said.
The private equity firms that did relent and sign an agreement have heavily negotiated its terms, the sources said, though it was not clear exactly what amendments had been made.
Other private equity firms interested in Yahoo include KKR, TPG Capital and Carlyle Group. Sources would not confirm if any of them had signed the confidentiality agreement, though a person familiar with the situation said those three firms and Providence are "among the hottest firms" involved in the process. The New York Times reported late on Thursday night that TPG had signed the agreement.
In a letter to Yahoo's board, Daniel Loeb, chief executive officer of hedge fund Third Point LLC, said he was "deeply concerned" Yahoo is looking at deals that will allow private equity firms to gain substantial equity positions in the company.
"More troubling are reports that Mr. Yang is engaging in one-off discussions with private equity firms, presumably because it is in his best personal interests to do so," added Loeb.
According to a Reuters report from early October, which cited multiple sources, Yang was exploring a deal with private equity firms to take Yahoo off the public markets in part because that would represent his best chance of remaining involved with the company.
Loeb, who is seeking two board seats at Yahoo through either the resignation of Yang and chairman Roy Bostock or by the creation of new seats, said that Yang needs to clearly state whether he is a buyer or seller.
"He cannot be both," Loeb wrote. "If we are correct and he is effectively a buyer, corporate ethics require him to recuse himself from any further discussions on behalf of the company."
Two of Yang's confidantes didn't disagree with Loeb. "We're all sitting here wondering how Jerry is able to do this, he's totally conflicted," said a Yang confidante who asked not to be identified talking about his friend. "The board should be concerned about getting the best price not how Jerry can stay in control but instead it's the opposite."
A Yahoo representative said in a statement that the board's strategic review is being "properly managed for the benefit of all shareholders."
The statement went on to say that, "Mr. Yang is one of nine directors with the exact same fiduciary duties and motivation as all of his fellow directors--to serve the best interests of all the company's shareholders."
PROGRESS ON A DEAL Yahoo set a deadline of Friday for potential buyers to sign a confidentiality agreement to be allowed a close look at its finances, according to people familiar with the matter.
After initially balking at its restrictive terms, several parties relented and signed the agreement by the deadline, which could be extended into next week to provide more time for other firms to sign on, these people said.
Still, at least five of the private equity firms interested in Yahoo--Silver Lake Partners, Providence Equity Partners, Bain Capital, Hellman & Friedman and Blackstone
The private equity firms that did relent and sign an agreement have heavily negotiated its terms, the sources said, though it was not clear exactly what amendments had been made.
Other private equity firms interested in Yahoo include KKR, TPG Capital and Carlyle Group. Sources would not confirm if any of them had signed the confidentiality agreement, though a person familiar with the situation said those three firms and Providence are "among the hottest firms" involved in the process. The New York Times reported late on Thursday night that TPG had signed the agreement.
No comments:
Post a Comment