Hoping to negotiate a compromise, activist investor Carl Icahn urged Yahoo Inc to declare it is willing to sell for US$49.5 billion — about US$2 billion above Microsoft Corp’s last offer for the Internet pioneer.
Icahn recommended the price tag, which works out to US$34.375 a share, in a letter he sent on Friday to Yahoo chairman Roy Bostock.
PUTTING IT IN FIGURES
It marks the first time that Icahn has publicly indicated what price he has in mind as he tries to force Yahoo’s sale before the Sunnyvale-based company’s annual meeting on Aug. 1.
If a deal i not reached before August, Icahn will try to replace Yahoo’s board with a slate of his own directors and then fire company cofounder Jerry Yang (楊致遠) as chief executive.
Should the mutiny succeed, Icahn said on Friday he would then hire a “talented and experienced” CEO in the mold of Google Inc chairman Eric Schmidt before trying to sell Yahoo to Microsoft.
Yahoo said it would be “ill-advised” to publicly set a specific sales price.
Microsoft declined to comment.
Merger talks between the two high-tech powerhouses fell apart on May 3, when Microsoft CEO Steve Ballmer withdrew an offer of US$47.5 billion, or US$33 per share, after Yang asked for US$37 per share — a price that Yahoo’s stock hasn’t reached since January 2006.
Many analysts have been predicting all along that Microsoft and Yahoo would eventually agree to a deal at somewhere between US$34 and US$35 per share.
At least two major Yahoo shareholders, Capital Research Global Investors and Legg Mason, have publicly pushed for a deal in the same price range.
Wall Street’s hopes that a friendly deal might still be worked out has helped cushion the blow to Yahoo’s stock since the takeover talks unraveled. Yahoo shares gained US$0.37 to US$26.73 amid a sharp downturn in the overall stock market.
POOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspended The Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. In three rounds of special and regular examinations conducted since last year, the commission found that Shin Kong Life had given too much power to an asset and liability management committee
Sony Corp has cut its estimated Play Station 5 (PS5) production for this fiscal year by 4 million units, down to about 11 million, following production issues with its custom-designed system-on-chip (SOC) for the new console, people familiar with the matter said. The Tokyo-based electronics giant in July boosted orders with suppliers in anticipation of heightened demand for gaming in the holiday season and beyond, as people spend more time at home due to the COVID-19 pandemic. However, the company has come up against manufacturing issues, such as production yields as low as 50 percent for its SOC, which have cut into
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s
O2O BICYCLE SHOW: The Taiwan Bicycle Show next year is to be online to offline, with forums, audio-visual conferences and livestreaming of the offline events Local bicycle makers expect demand to continue outpacing supply due to orders triggered by the COVID-19 pandemic, with some companies seeing orders back up through next year. “Next year is all full in terms of orders. Our lead time on components is one year,” Giant Manufacturing Co Ltd (巨大機械) chairwoman Bonnie Tu (杜綉珍) told a news conference in Taipei organized by the Taiwan External Trade Development Council (TAITRA) to announce next year’s Taipei Cycle Show. The pandemic has reduced bicycle supplies and increased demand around the world, Robert Wu (吳盈進), chairman of KMC (Kuei Meng) International Inc (桂盟國際), one of the world’s