Tags: Yahoo | Starboard | proxy fight | hedge fund

Yahoo Board Needs to Be Replaced, Hedge Fund Says in Proxy Fight

Image: Yahoo Board Needs to Be Replaced, Hedge Fund Says in Proxy Fight
Marissa Mayer, president and chief executive officer of Yahoo! Inc. (Photo: Twitter)

Thursday, 24 Mar 2016 09:00 AM

Activist hedge fund Starboard Value LP, an investor in Yahoo Inc, said it was seeking to remove the entire board of the struggling Internet company.

Starboard, which has been pushing for changes at Yahoo since 2014, said it would nominate nine members to the Yahoo board.

"It is unfortunate that this action is necessary," Starboard said in a letter to Yahoo shareholders on Thursday.

"We have been extremely disappointed with Yahoo's dismal financial performance, poor management execution, egregious compensation and hiring practices, and general lack of accountability and oversight by the board."

However, the hedge fund which owns about 1.7 percent of Yahoo, said it remained open to discussions with Yahoo and was hopeful it could reach an agreement to get involved with the company.

Yahoo's shares were up 0.7 percent at $35.03 in premarket trading.

A proxy fight would come at a time when Yahoo is pressing ahead with an auction of its core Internet business. Shareholders have until March 26 to submit nominations for board members to be elected at Yahoo's annual meeting this spring.

Yahoo launched an auction of its core business in February after it shelved plans to spin off its stake in Chinese e-commerce giant Alibaba Group Holding Ltd.

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, sources have said.

Starboard's nominees include its chief executive, Jeffrey Smith, and Eddy Hartenstein, the former chief executive of Tribune Co.

Yahoo could not be immediately reached for comment.

© 2017 Thomson/Reuters. All rights reserved.

 
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Activist hedge fund Starboard Value LP, an investor in Yahoo Inc, said it was seeking to remove the entire board of the struggling Internet company.
Yahoo, Starboard, proxy fight, hedge fund
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2016-00-24
Thursday, 24 Mar 2016 09:00 AM
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