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Gates 'plotting a Yahoo board coup'
Bill Condie20 Feb 2008
Microsoft is reportedly set to try to seize control of the Yahoo board and force its $41.6 billion (£21.3 billion) takeover offer through.
Microsoft will launch the proxy battle by nominating a slate of directors by 13 March if Yahoo's board does not enter talks, according to the New York Times. The nominees would be voted on at the internet search giant's annual shareholder meeting in June.
A proxy fight could cost up to $20 million, according to analysts.
Microsoft chief Bill Gates' cash-andstock bid, rejected by Yahoo, was originally worth $44.6 billion but has fallen along with Microsoft's share price in the fortnight since it was mooted.
A Microsoft spokesman said the company-reserved the right to exercise all options but declined to comment specifically on the report. It has also been suggested Microsoft could go directly to shareholders with the deal.
"Microsoft is doing the smart thing. It's giving both the carrot and the stick," said Morningstar analyst Toan Tran.
Gates said on Monday that he would not haggle with Yahoo. "We've sent our letter and we've reinforced that we consider that it's a very fair offer," he said.
Microsoft is bidding $31 a share, a deal many Yahoo shareholders are eager to accept.
