First came the flat out refusal of Microsoft’s buyout offer for Yahoo followed by the deal with Google. Now the push by Icahn backers to have a court case settled before the August stockholder meeting has failed.In Delaware, a judge refused to grant an expedited trial on the matter of whether or not Yahoo execs should be held personally liable for ‘acts detrimental to Yahoo and its stockholders.’
Jerry Yang, CEO, and board chairman Roy Bostock were accused of ignoring the best interests of the stockholders by turning down Microsoft earlier this year. The charges also included an attack on the ‘poison pill’ severance plan, a retention option which was intended to protect employees in the case of a hostile takeover, but was painted by opponents as a deliberate move to thwart the deal.
This plan also takes place immediately in the case of a change in the board There were hopes among the dissidents that it could be overturned before the proxy battle between Icahn’s hand-picked board and the current members.
Icahn may find a victory at the stockholder meeting comes too little, too late, as all of the points he hoped to address are now moot.