Billionaire investor Carl Icahn, in an open letter, has accused Yahoo of botching deal with Microsoft.
The letter was addressed to Yahoo investors urging them to replace the firm’s existing board with new executives who would consider a deal with Microsoft.
On a possible deal with Yahoo Icahn has been in talks with Microsoft CEO Steve Ballmer. According to Icahn:
Steve made it abundantly clear that, due to his experiences with Yahoo during the past several months, he cannot negotiate any transaction with the current board. His logic is simple. If and when a transaction was consummated, Microsoft would be guaranteeing a great deal of capital at closing.
But the transaction will take at least nine months or more to obtain regulatory clearance especially in USA and Europe. During that period, if the current board of Yahoo mismanage the company as their past record shows, Microsoft would be putting its money at risk and a great deal could be lost.
In another announcement Microsoft has stated that, if a new board were to be elected, it would still discuss deal with Yahoo.
Icahn concluded:
Steve made it clear to me that if a new board were elected, he would be interested in discussing a major transaction with Yahoo, such as either a transaction to purchase the ‘Search’ function with large financial guarantees or purchasing the whole company.
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