Looks like Yahoo is more concerned about the Third Point founder’s intentions than everyone let on early this week when they announced that the company would pay $1.16B for 40M of Daniel Loeb’s shares, bringing his stake below 2%. The agreement also includes an extended standstill agreement, which prevents Loeb from moving against Yahoo management into 2018, according to an SEC filing today. It bars the hedge fund from owning more than 3% of Yahoo’s shares. Loeb can’t solicit proxies or make a shareholder proposal. The activist investor also would need board approval before he could participate in a merger or a restructuring or recapitalization involving one of Yahoo’s subsidiaries or affiliates. The Internet company said that it wouldn’t disparage Loeb and his colleagues, Michael Wolf and Harry Wilson — all of whom will resign from the board at the end of this month. Loeb is an investor in Variety with Deadline’s parent company PMC.
By DAVID LIEBERMAN, Financial Editor | Thursday July 25, 2013 @ 5:01pm EDTTags: Daniel Loeb, Third Point, Yahoo
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This article was printed from http://www.deadline.com/2013/07/third-point-daniel-loeb-standstill-agreement-yahoo/