Icahn & Yahoo Trade Shots….. UN Peacekeeping Force May Be Required

Yahoo must have been really ticked off at Carl Ichan’s last salvo to put out a press release that only says the following:

“Leaving aside Mr. Icahn’s inaccurate interpretation of our retention plan, we again note that he has no credible plan to operate Yahoo!. We believe that Mr. Icahn’s suggestion that we cancel our retention plan would have a destabilizing impact on Yahoo! and would clearly not be in the best interests of our shareholders. Furthermore, his suggestion that we put out a price publicly to see if Microsoft will alter its stated position is ill-advised. As we have stated numerous times publicly and privately, we are open to any transaction including a sale to Microsoft if it is in the best interests of shareholders”

That must not have sit well with Ichan as he fired back this morning. First he talks about the severance plan:

“Indeed, Yahoo!’s own compensation advisor called the severance plan “nuts.” Is it not true, as the shareholder complaint stated, that Microsoft’s CEO earmarked $1.5 billion for employee retention (a benefit you neglected to tell your employees about)? Is it not better to incentivize employees to stay in their jobs than to quit? Instead of just continuing to repeat the mantra that we have made an inaccurate interpretation of your severance plan, why do you refuse to go into detail as to why our interpretation is incorrect?”

Then he talks about Yahoo’s last press release:

” In your press release from Friday, you stated again that I do not have a credible plan for Yahoo! Did you even bother to read my letter, which went into great detail on what measures I would ask the new board to take?”

To top it off, he calls them out:

“I outlined a number of questions in Friday’s letter. Why don’t you do me the courtesy of answering my questions as I have answered yours?”

So it’s clear that this war of words is escalating further. One wonders if this will continue until the August 1st board meeting, or will something happen sooner. Whatever happens, it’s bound to be entertaining to all but the employees of Yahoo and the two sides in this war.

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