Yahoo staves off Microsoft proxy fight

5 March 2008

Search engine company Yahoo has moved to delay Microsoft's attempt to take over its board of directors.

Last month, Microsoft appeared to step up its fight to acquire Yahoo, by preparing for a 'proxy battle' whereby it would nominate directors to Yahoo's board by 13 March.

However, Yahoo has filed changes to the deadline for nominations, which will now occur 10 days after its annual meeting – the date of which is yet to be set.

In an email to employees, Yahoo boss Jerry Yang said that the action "removed an imminent deadline".

"Microsoft, of course, could still choose to name directors," he wrote, "but our objective here is to enable our board to continue to explore all of its strategic alternatives for maximizing value for stockholders without the distraction of a proxy contest."

The "strategic alternatives" may include a possible deal with Time Warner, owner of AOL Internet. The Wall Street Journal reports sources who say that negotiations between the two companies have intensified in light of the Microsoft bid.

Category: MSN, Search engines, Yahoo