ADOTAS — Seven shareholders have hit Yahoo, Inc., with lawsuits claiming the software giant blundered in its handling of Microsoft’s unsolicited $44.6 billion takeover bid, according to published reports.
Five of the seven suits accuse Yahoo’s board of breaching its duty by rebuffing Microsoft without trying to negotiate a better deal, the San Jose Business Journal reports. The other two claim Yahoo is improperly favoring the $31 per share bid (which it turned down). Several of the lawsuits were brought by pension funds. Four of the seven were filed with California’s Supreme Court and the rest were filed in Delaware at the Court of Chancery.
In its annual report filed with the Securities and Exchange Commission yesterday, Yahoo said the proposal was a “significant distraction” to management and staff.
Meanwhile, Microsoft may use its right as a Yahoo shareholder to overthrow its 10-member board (which includes CEO Jerry Yang) – and replace it with directors who would lend a more sympathetic ear to Microsoft. The deadline to nominate new directors to Yahoo’s board is March 13.