Page last updated at 12:41 GMT, Monday, 21 July 2008 13:41 UK

Yahoo makes agreement with Icahn

Yahoo building and flag
Yahoo's share price is well below the $31 Microsoft offered for it in February

Yahoo has reached an agreement with the activist investor Carl Icahn that will stop him trying to replace its board.

Mr Icahn was annoyed that Yahoo had resisted Microsoft's attempts to take it over.

He planned to replace the board at next month's annual meeting and then sell the company to Microsoft.

Yahoo's board will now be expanded from nine members to 11, comprising Mr Icahn and two of his nominees along with eight of the original members.

Mr Icahn, who owns 5% of Yahoo's shares, said that he would now withdraw his other nominees from the firm's annual meeting on 1 August

In a statement, he said that the sale of the company still merited "full consideration".

Last week, Yahoo angrily rejected a joint takeover offer for the company from Microsoft and Mr Icahn, describing the alliance as "odd and opportunistic".

Microsoft offered $31 a share for Yahoo in February but Yahoo has said it will only consider an offer of at least $37 a share.

On Friday Yahoo's shares closed at $22.45.




RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites


FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

BBC navigation

BBC © 2013 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific