Yahoo! severance plan draws shareholder suit

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Posted Jun 10th 2008 1:30PM by Tech Confidential
Filed under: Deals

Who knew that the severance plan adopted by Yahoo! Inc. (NASDAQ: YHOO) in the aftermath of an acquisition offer by Microsoft Corp. (NASDAQ: MSFT) would turn into a big, contentious issue in a proxy fight staged by Carl Icahn and, now, a shareholder lawsuit?

Lawyers representing the Police and Fire Retirement System of Detroit are asking a Delaware court to invalidate the severance plan, saying the associated costs, estimated at between $500 million and $2.1 billion, could effectively bar Microsoft from acquiring Yahoo!. It was adopted in February after Microsoft offered to acquire Yahoo! for $44.6 billion, and has drawn criticism from Icahn, who has labeled it a "poison pill." Yahoo! is arguing that it needed to adopt the severance plan in order to retain employees.

The complaint seeks a trial date before Yahoo!'s annual shareholder meeting on Aug. 1.

Continue reading at TechConfidential.com.

Tags: Carl Icahn, CarlIcahn, MSFT, Police and Fire Retirement System of Detroit, PoliceAndFireRetirementSystemOfDetroit, YHOO

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