With rumours of a possible sale intensifying, Yahoo! is being sued by its investors who claim that members of the board aren’t partaking in their duty to seek the best price for the search engine giant – if it is indeed sold – according to an article published by Bloomberg.
Yahoo! are said to have implemented bidding rules that would discourage a purchase that would lead to the replacement of the company’s current directors – which include the search engine giant’s co-founder, Jerry Yang – according to the lawsuit filed by M&C Partners III in Delaware Chancery Court, Wilmington on December 1.
M&C have also claimed that the company “has adopted a confidentiality agreement” for potential bidders, which prevents them from speaking with other bidders and confines “themselves to a bid for only a minority stake,” according to court papers.
They also allege in their lawsuit that this confidentiality “constitutes an unreasonable anti-takeover device” and “tilts the playing field” in favour of co-founder, Yang, who they state wants to have “a disproportionate influence” over the Yahoo!’s affairs.
According to Bloomberg News sources, Alibaba Group Holding Ltd and Softbank Corp are said to be in talks with Blackstone Group LP and Bain Capital LLC with regards to making a bid for the whole of Yahoo! – a popular platform for search engine marketing.
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