Carl Icahn says that if his bid for a new Yahoo! board is successful he will see current chief executive Jerry Yang ousted, accusing him of actively working to disrupt Microsoft’s USD44.1bn offer for the company.
Speaking to the Wall Street Journal, Icahn says he is “amazed” at the lengths Yang and other Yahoo! senior employees went to in order to block the Microsoft offer, referring to the recent unsealing of court documents that show the refusal of a USD40 per share offer made by Microsoft in January 2007 and the creation of an employee severance plan following Microsoft’s latest offer, seen a major barrier to the negotiations.
Icahn claims the severance plan could have seen Microsoft pay at least USD2.5bn extra to keep Yahoo! employees on board following a takeover, a significant cost that is believed to have been a major deterring factor.
The implication that senior Yahoo! staff actively worked to sabotage the negotiation process is seen as a major barrier to positive future negotiations by Icahn, who says that he believes Microsoft executives have lost all trust in Yang and will not consider a new bid or other venture while he remains at the company.