Friday, June 6, 2008
Icahn Sets Yahoo Shares Price Tag
So my inbox is being blitzed with SEC filings by Yahoo detailing the love letters exchanged between billionare investor Carl Icahn and Yahoo! Inc. Chairman Roy Bostock. Considering I've already written everything I can think of on Icahn's Yahoo proxy bid, which includes the first round of letters between the above mentioned parties, I was planning to ignore the second round.
But them I notice that Icahn sets a price of $34.375 as the price per share which Yahoo should ask Microsoft to pay. But before we get to that, just to keep all the ducks in a row, here's all the letters, in the order in which they were sent.
1. Icahn's first letter to Bostock - http://yhoo.client.shareholder.com/secfiling.cfm?filingid=928475-08-200
2. Bostock's Response to 1 - http://yhoo.client.shareholder.com/ReleaseDetail.cfm?&ReleaseID=314081
3. Icahn's response to 2 -http://yhoo.client.shareholder.com/secfiling.cfm?filingid=928475-08-204
4. Yahoo's response to 3 - http://yhoo.client.shareholder.com/secfiling.cfm?filingid=891618-08-299
So, 1,2 & 4 contain routine talking points, all of which have been throughly discussed here and on other sites. That leaves No. 3, wherin Icahn states that he will terminate the faux severance plan if he gains control and asks Bostock to "stop dancing around the subject and publicly offer to sell the company to Microsoft for $34.375 per share and promise to cooperate completely."
Now, I have categorically stated before that whatever or however it happens, Yahoo will be sold to Microsoft lock, stock and barrel, and the price will be $34 to $35. But the .375 interests me. Not to put too fine a point on it, but everything Icahn says in his two letters are repititions of media chatter and analyst reports. The only thing which I haven't seen before, in all this back and forth, is that .375. So I tried to contact Carl Icahn, to find out what exactly was the point behind that figure. No response yet, but if I do get one, I'll update this post. And I fully expect some more letters to fly back and forth between Icahn and Yahoo, which will also be included as updates in this post. So if you want to keep uptodate with who-said-what, then you might want to bookmark this post.
But them I notice that Icahn sets a price of $34.375 as the price per share which Yahoo should ask Microsoft to pay. But before we get to that, just to keep all the ducks in a row, here's all the letters, in the order in which they were sent.
1. Icahn's first letter to Bostock - http://yhoo.client.shareholder.com/secfiling.cfm?filingid=928475-08-200
2. Bostock's Response to 1 - http://yhoo.client.shareholder.com/ReleaseDetail.cfm?&ReleaseID=314081
3. Icahn's response to 2 -http://yhoo.client.shareholder.com/secfiling.cfm?filingid=928475-08-204
4. Yahoo's response to 3 - http://yhoo.client.shareholder.com/secfiling.cfm?filingid=891618-08-299
So, 1,2 & 4 contain routine talking points, all of which have been throughly discussed here and on other sites. That leaves No. 3, wherin Icahn states that he will terminate the faux severance plan if he gains control and asks Bostock to "stop dancing around the subject and publicly offer to sell the company to Microsoft for $34.375 per share and promise to cooperate completely."
Now, I have categorically stated before that whatever or however it happens, Yahoo will be sold to Microsoft lock, stock and barrel, and the price will be $34 to $35. But the .375 interests me. Not to put too fine a point on it, but everything Icahn says in his two letters are repititions of media chatter and analyst reports. The only thing which I haven't seen before, in all this back and forth, is that .375. So I tried to contact Carl Icahn, to find out what exactly was the point behind that figure. No response yet, but if I do get one, I'll update this post. And I fully expect some more letters to fly back and forth between Icahn and Yahoo, which will also be included as updates in this post. So if you want to keep uptodate with who-said-what, then you might want to bookmark this post.
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