Microsoft set for proxy battle with Yahoo
February 21, 2008
Microsoft has hired a firm that specialises in proxy battles in a move which suggests it could try to oust the current board of Yahoo directors.
The Yahoo board rejected a takeover offer from Microsoft worth more than $40bn (£20.6bn) saying it was too low. A proxy fight would see Microsoft nominate a group of directors sympathetic to a deal for shareholders to vote on at Yahoo’s annual meeting.
The move would be cheaper than raising its $31-a-share offer, analysts say.
Microsoft’s offer was 62% above the level at which Yahoo stock was trading when the bid approach was made on 1 February, and Microsoft has called the price “full and fair”. However, one of Yahoo’s biggest shareholders, Bill Miller, an asset manager at Legg Mason, recently said a fair price would be nearer $40 a share.
But it is thought that even offering an extra $1 a share would cost Microsoft an additional $1.4bn, while waging a proxy fight could cost between $20m and $30m.
A report in the New York Times on Tuesday said that Microsoft could authorise its proxy battle as soon as this week to put pressure on the Yahoo board. Microsoft would have until a 14 March deadline to put forward its own choice of directors for shareholders to approve.
Microsoft declined to comment on the report. But Innisfree M&A Incorporated, which specialises in corporate actions, confirmed that it had been hired by Microsoft.
Separately, Yahoo has put in place severance benefits for employees who are made redundant if the company is sold within two years. Details in a securities filing show that they include top executives getting two years worth of salary, while all staff will receive at least four months.
Some analysts believe the move is aimed at winning round rank-and-file employees and fuel an exodus of talent if Microsoft succeed in a hostile quest for Yahoo.
BBC TV programmes put on iTunes
February 20, 2008
BBC shows including Life on Mars and Little Britain have been made available to download from digital store iTunes. The deal makes the BBC the first UK broadcaster to offer programmes via Apple’s download service.
Torchwood and Spooks are among the other shows that can now be purchased for £1.89 an episode in the UK. Recently-aired programmes like Ashes to Ashes will appear on iTunes after they have been made available to view on the BBC’s free iPlayer catch-up service.
The iPlayer is proving extremely popular, with more than 3.5 million shows streamed or downloaded in its first two weeks of operation after its Christmas Day launch.
The BBC is also planning to launch a joint on-demand content service with ITV and Channel 4 later this year.
Crude Oil prices slip back below $100
February 20, 2008
Crude Oil prices have dropped back from a new record high above $100 a barrel that was hit in New York trade on Tuesday. In Asian trade, the main contract for light, sweet crude oil fell 73 cents to $99.28 a barrel, after closing above $100 for the first time on Tuesday.
But the steep rise in the oil price knocked share prices, with Japan’s Nikkei index closing down more than 3%. Oil hit a record $100.10 a barrel on Tuesday on fears the group of Opec producing nations would cut output.
Market analysts said Opec producers might cut production in response to the slowdown of the US economy, which is the world’s biggest oil user.
There was also concern over supplies from Nigeria and the ongoing row between Exxon Mobil and Venezuela.
Crude oil jumped 5% to hit a record of $100.10 and closed at $100.01 on Tuesday. Opec oil producers are due to meet next on 5 March.
Lamy welcomes revised agriculture and NAMA negotiating texts
February 20, 2008
WTO Director-General Pascal Lamy welcomed the release of revised negotiating texts in agriculture and industrial goods trade issued on 8 February by Agriculture Negotiating Group Chairman Crawford Falconer and Non-Agricultural Market Access Chair Don Stephenson.
These documents, he said, paved the way for the launch of an important new stage in the Doha Round of global trade talks.
“The two chairs have produced texts which are now comprehensive. They reflect the progress that has arisen from the intensive negotiations involving all 151 WTO Members since July of last year. Both Crawford and Don have listened to the Members and their views are reflected in these negotiating documents. As expected some areas in the negotiations will require further work. But it is clear that with the release of these revised texts we are a step closer to looking across both these issues as we try to find the final balance for an ambitious and development-oriented round.”