Icahn's latest lament: Et tu, Legg Mason?
This wasn't the sort of reaction Carl Icahn was expecting from his former buddies on Wall Street.
Legg Mason Capital Management, which controls about 4.4 percent of outstanding Yahoo stock, plans to back management at the company's shareholders meeting next month. Could it be that Legg Mason thinks he's as clueless as Yahoo claims he is when it comes to managing a complex technology company?
Bill Miller, chairman and chief investment officer of Legg Mason, said Friday in a statement that Legg Mason would prefer the feuding sides reach a settlement and "end this disruptive proxy contest."
But so much blood has been spilled that no one involved believes that scenario is likely. As a result, Miller and his company are giving the nod to Yahoo CEO Jerry Yang.
"We believe the current board acted with care and diligence when evaluating Microsoft's offers," Miller said. "We believe the board is independent and focused on value creation for long-term shareholders."
Win some, lose some. But this is a big loss on Icahn's home turf.
The guy may not know how to navigate around a personal computer, but he knows Wall Street like the back of his hand. So if Icahn, one of the guys who wrote the book on greenmail, couldn't win over one of his own--Et tu, Brute?--you have to wonder about his chances at the showdown with existing management on August 1.
Charles is an executive editor with CNET News. He has covered technology and business for more than 25 years. A graduate of Queens College and Columbia University, Cooper began his career in journalism at the Associated Press before moving to technology coverage. Before joining CNET News, he worked at Computer & Software News, Computer Shopper, PC Week, and ZDNet. He received the Excellence in Journalism award from the Northern California branch of the Society for Professional Journalists for column writing. In addition to his blogging and podcast appearances, he is a co-host of the CNET News Daily Debrief. E-mail Charlie.
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I am so tired of hearing this garbage about Yahoo not negotiating in 'good faith'. What the hell does that mean. MS came to the table with 31 dollars a share. Yahoo wanted 37 dollars a share. That is where the negotiating begins. By throwing out the 37 dollar counter offer, they were attempting to negotiate. 33 dollars a share, the number that everyone banters about, WAS NEVER BROUGHT TO THE TABLE FOR SHAREHOLDERS. It was an offer made orally. That counts for absolutely nothing. $31 was the only number ever put in writing. Let me ask you something, when you walk into a car dealer, do you accept the first number they give you? If you do your a fool. So as much as everyone wants to twist this, it is really MS who did not negotiate in good faith. If MS REALLY wanted this company, split the difference and bring $34 a share to the table. If that is not accepted, than I would say Yahoo isnt looking out for their shareholders.
But, There is wrong in colloborating between Carl Icahn and Steve Ballmer iin talking about illegal hostile taking over control of Yahoo,fue to Carl Icahn has no rights to do so.
Steve Ballmer should do negotiate with legitimate persons who are have discretion power in discharging corporate strategy for the best long term interest of company,not only shareholders.
I would think this, with Icahn's Board of Directors that has little experience in running a technology company, clearly indicates what Icahn is up to. Maximum profit for him and his Board with a "superior performance" bonus and be damned the stockholder profits.