Carl Icahn backed off his proxy fight for Yahoo! earlier this week because those he selected to appoint to the Yahoo! board were "nervous about having a complete change of control," the billionaire investor wrote in a Tuesday blog post.
"By the end of last week, I realized that although many large shareholders supported me and my slate for the board, they were nervous about having a complete change of control," Icahn wrote on his recently launched blog, The Icahn Report. "From prior proxy contest experience, I have discovered that a minority position on the board can be also quite effective."
In a post titled "How I Spent My Weekend," Icahn said he and Yahoo! executives Roy Bostock and Jerry Yang were up until 5 AM on Monday, trying to reach a compromise. The two sides eventually agreed to a deal whereby Icahn would abandon his proxy contest for Yahoo! in exchange for a seat on the company's board and two board members of his choice.
Icahn said he was pleased that the deal included a provision that he be allowed to serve on any committee established to consider a merger and another that would require a full discussion on any meaningful offer.
In a July 20 "farewell note" to seven of the nine individuals Icahn had reportedly tapped to voted to the Yahoo! board, Icahn said that those who were not selected to be on Yahoo!'s board would be getting $25,000 each from Icahn himself.
The letter was addressed to Harvard law professor Lucian Bebchuk; former Viacom CEO Frank Biondi; former Nextel CEO John H. Chapple; Mark Cuban, co-founder of HDNet and the owners ...