Third Point manager Dan Loeb told Yahoo (YHOO), in a letter addressed to CEO Scott Thompson, last Wednesday that he plans to file a challenge for board seats after his attempt to add himself and three other new members to the board was met with a chilly reception.
The four nominated men – Maeva Group CEO Harry Wilson, former MTV Networks President Michael Wolf, former NBC Universal CEO Jeff Zucker and Loeb – each received a single phone call from the Nominating and Corporate Governance Committee. None of the phone calls were considered an “interview” nor were any steps outlined regarding the nomination process. Loeb’s hedge fund Third Point owns over 70.5 million shares in Yahoo, making it the company’s largest outside shareholder. The position was valued at roughly $903.29 million at the end of the fourth quarter 2011, representing a roughly 6% stake in the company.
In the letter filed with the SEC, Loeb expressed his disappointment with the board’s selection process and stated his hedge fund Third Point’s intention to file a preliminary proxy statement soon. Loeb said in the letter that his intention is to “ensure Yahoo! maintains its place as a premier internet company by forcefully addressing the immediate strategic and operational challenges it faces,” and he expressed that his goal in trying to get these board members elected is to develop “a powerful strategic planning committee (that) would promptly but thoughtfully map out a plan to take full advantage of the Company’s valuable assets and stop its painful decay.To continue reading, click here.