|| Author: James Johnson|Tags:

Yahoo Sued By Shareholders Looking To Maximize Returns



Yahoo Logo

Yahoo! Inc., has been exploring their various acquisition and strategic content development options for months and now the company is being sued by a group of shareholders who simply want the company to grab the best possible price for the internet search and content development firm.

The lawsuit, filed on Dec. 1 in a Delaware Chancery Court by M&C Partners III claims that company co-founder Jerry Yang has created bidding rules that would make it nearly impossible to acquire the company and then replace the organizations directors.

According to the lawsuit Yahoo:

“Has adopted a confidentiality agreement” for bidders, prohibiting them from talking with other bidders and to “confine themselves to a bid for only a minority stake.”



M&C claims that the no cross-talk provision:

“Constitutes an unreasonable anti-takeover device” and “tilts the playing field” to give Yang a “disproportionate influence” over company affairs.

At the hard of the lawsuit is Yang’s attempt to provide only a minority stake in the company, a stake M&C says is “unlawful and unenforceable.”

The lawsuit comes at a time when Alibaba Group Holding Ltd, Softbank Corp, Blackstone Group LP and Bain Capital LLC are said to be gearing up for a takeover bid.

The case is filed under: M&C Partners III v. Jerry Yang and Yahoo! Inc. (YHOO), CA7082, Delaware Chancery Court (Wilmington).

Yahoo spokespeople have not returned calls for comment at this time.