Business

Pickens sold all his shares in Yahoo
by Livia Cseresova

T. Boone Pickens, a billionaire investor has sold all his holdings in Yahoo Inc. because of the way its management acted in sales negotiation with Microsoft Corp.

As Pickens said to the San Francisco Chronicle, he sold all (10 million) of his Yahoo shares at a loss. The reason was his irritation with the companies repeated refuses of Microsoft's offers.

Pickens believes "that Yahoo management was pathetic.", and he refuses to enumerate his losses. But his stake was reached in May, when Yahoo was trading between $24 and $28 per share.

For the past week, though, Yahoo's stock price hasn't reached more than $22.50, what very likely means that Pickens lost millions of dollars. The shares of Yahoo on Thursday gained 3 cents and ended at $20.15.

Some other disappointed shareholders are likely to blast Jerry Yang, Yahoo Chief Executive, and his fellow board members on Friday, when the company's annual meeting is held.

The shareholders are angry because in May, Yang rejected the offer of Microsoft to buy Yahoo for $33 per share. Yang wanted $37 per share and then Microsoft withdrew the bid. $37 per share is the price that Yahoo's stock hasn't reached in 2 and half years.

Currently the Yahoo's market value is fixed approximately $20 billion below the last offer of Microsoft.

Microsoft, too, has offered to buy Yahoo's online search operations in more complex deals two times, but these suggestions were also declined.

T. Boone Pickens invested in Yahoo from a big part as a bet on investor Carl Icahn. Icahn had launched a campaign to get rid of Yahoo's board hoping to revive Microsoft's bid.

Icahn finally persuaded Microsoft to make offer only for a part of Yahoo and then he negotiated a treaty, that gives him and two of his partners seats on Yahoo's expanded board.

And even though eight (out of nine) directors who rejected Microsoft will stay on the board, Icahn still hopes to negotiate the sale.

by Livia Cseresova for PocketNews (http://pocketnews.tv)

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edited by Beata Biskova

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posted by Blog TechSource @ 1:15 AM