Third Point Demands Records From Yahoo About CEO's Hiring

Date : 05/07/2012 @ 1:29PM
Source : Dow Jones News
Stock : Yahoo! Inc. (MM) (YHOO)
Quote : 48.36  0.1 (0.21%) @ 8:00PM

Third Point Demands Records From Yahoo About CEO's Hiring

Yahoo! Inc. (MM) (NASDAQ:YHOO)
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Hedge fund Third Point LLC said it sent demands to Yahoo Inc. (YHOO) to open its records about the hiring of its chief executive and the naming of certain board members, amid a continued attack on the Internet company's management.

Third Point, which owns nearly 6% of Yahoo shares, had set a deadline of noon EDT Monday for Yahoo to act on its demands, which include calling for the termination of Chief Executive Scott Thompson, among other things, after the company admitted last week it misstated Thompson's academic record.

About half an hour following the deadline, Third Point said it made a written request for company records related to the hiring of Thompson, the appointment of Patti Hart to the Yahoo board, and the selection of board members Peter Liguori, John Hayes, Thomas McInerney, Maynard Webb, Jr., and Fred Amoroso. The demand was made under a section of Delaware General Corporation Law that allows any stockholder to inspect certain books and records of a public company upon written request.

"We believe that this internal investigation by this board must not be conducted behind a veil of secrecy and shareholders deserve total transparency," Third Point said.

A Yahoo representative wasn't immediately available for comment.

Third Point, run by activist investors Dan Loeb, last week alleged that Yahoo misstated Thompson's bachelor's degree in Securities and Exchange Commission filings, stating he held a degree in accounting and computer science, even though his degree was only in accounting. Yahoo soon after confirmed the error.

The accusation and response indicate the rising tension in the ongoing proxy fight between Yahoo and Third Point, which has been agitating for an overhaul of the company's board. Yahoo, meanwhile, is in the midst of a turnaround effort under Thompson, who was appointed in January, and joined the company from eBay Inc. (EBAY).

Yahoo's shares were up 1.7% at $15.41. The stock is down 4.5% so far this year.

 
 

-By Ben Fox Rubin, Dow Jones Newswires; 212-416-3108; ben.rubin@dowjones.com




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