Billionaire investor Carl Icahn is moving ahead with plans to nominate directors for the board of today, two people familiar with his thinking said Wednesday, giving investors a chance to show how badly they want the Internet company sold.
The famed corporate activist, who has purchased 50 million Yahoo shares, has asked 12 people whether they would be willing to serve if asked, the people said, and may try to take control of the Internet powerhouse by unseating the entire 10-person board.
Among the dozen is former Viacom Inc. Chief Executive Frank Biondi, the people said.
Reports that Icahn was considering running a full slate surprised some major shareholders, who had been told by Icahn's allies just a day before that he intended to put forward only a few names to serve as agitators.
"I hadn't heard it even contemplated he would do a full slate," one big Yahoo investor said. "It puts more pressure, to the extent he actually does it, on Yahoo. But it also comes with attendant risks for Icahn. Getting a full slate elected is more difficult."
Still unclear late Wednesday was whether Icahn would be able to entice Microsoft Corp., which recently withdrew its $47.5-billion offer for Yahoo, back to the bargaining table. The Redmond, Wash.-based maker of Windows and Office software wants to combine with Yahoo in order to compete better with Google Inc. in the burgeoning market for Internet advertising. Microsoft earlier this month dropped plans to run its own slate of deal-friendly candidates for the board. It declined to comment Wednesday.
"The million-dollar question now is: Is Microsoft a buyer or not?" said Anthony Valencia, an analyst at Yahoo investor Trust Co. of the West.
Many investors have criticized Yahoo's incumbent directors for failing to accept Microsoft's unsolicited takeover offer. Microsoft made a public bid of $31 a share in cash and stock Feb. 1 and eventually raised its offer to $33 a share. But it broke off talks May 3 after Yahoo asked for $37 a share.
That breakdown left investors plotting how best to pressure Yahoo to restart the negotiations. Some welcomed Icahn's entry into the fray this week but said they were nervous about putting the maverick strategist in full charge of the company.
Yet Icahn may have found enough support in his conversations that he thought he could win control, according to allies and analysts.
