YAHOO MAY DELAY ANNUAL MEETING IN AN EFFORT TO THWART MICROSOFT TAKEOVER

The New York Times is reporting that Yahoo is considering several options in an effort to avoid being taken over by Microsoft, including delaying their annual shareholder meeting. The twists and turns of this deal get more interesting by the day.

From The New York Times:

Yahoo is considering several options, including a plan to postpone its annual meeting, people close to the company said on Tuesday.

Microsoft had been preparing to nominate a slate of directors to the board of Yahoo by next Thursday, the deadline for mounting a proxy contest. On Wednesday, Yahoo said it was extending the deadline for nominating directors until 10 days after the announcement of a date for its annual meeting — but gave no indication when that announcement might come.

Under the laws of Delaware, where Yahoo is incorporated, a public company cannot go more than 13 months without holding an annual meeting. Yahoo held its annual meeting last year on June 12.

The delay could leave room for Microsoft to reach a negotiated, friendly deal with Yahoo, which would be made much more difficult if Microsoft decided it needed to pursue the proxy contest. On the other hand, Yahoo’s continued maneuvering might just harden Microsoft’s resolve.

Yahoo’s investors could take the view that by postponing the meeting the company is disenfranchising its shareholders. The move could lead to lawsuits from Microsoft or from Yahoo shareholders.