Yahoo feeling pressure from shareholders on MSFT deal

Yahoo will be feeling more pressure now to work it out with Microsoft as some rather large shareholders are making a case that they are going to try an overturn the decision.

From Bloomberg article - May 15 (Bloomberg) — Paulson & Co., the New York hedge-fund manager run by John Paulson, bought a 3.6 percent stake in Yahoo! Inc. and will support investor Carl Icahn’s effort to push the company back into takeover talks with Microsoft Corp. Paulson owned 50 million shares of the Sunnyvale, California-based Internet company as of March 31, according to a filing today with the U.S. Securities and Exchange Commission. Capital World Investors, Yahoo’s largest investor, almost doubled it stake to 135.5 million shares from the fourth quarter. Capital World is a unit of Los Angeles mutual-fund manager Capital Research & Management Co.

Icahn today threatened to seek control of Yahoo’s board if the Internet company doesn’t revive takeover talks with Redmond, Washington-based Microsoft over its failed $47.5 billion bid. Icahn disclosed that he owns the equivalent of 59 million shares, or 4.3 percent.

Yahoo rose 61 cents, or 2.3 percent, to $27.75 at 4 p.m. in Nasdaq Stock Market trading in New York. Microsoft climbed 52 cents to $30.45.