Daniel Loeb, the CEO of hedge fund Third Point LLC has sent a letter to the board of directors of Yahoo! Inc. (YHOO) demanding that the company's Chief Executive Officer Scott Thompson should be terminated. They are asking for the Internet giant to make the move by May 7. The request stems from inaccurate information included on Thompson's biography, and from a battle over Third Point board nominees.
Loeb said he will consider his grounds for further action if the Board does not take the following steps by the deadline. The Third Point chief also urged Yahoo's Board to drop its resistance to placing the Third Point nominees on the Board.
In the letter, Daniel Loeb said Yahoo!'s initial response yesterday to Third Point's identification of material inaccuracies in both CEO Scott Thompson's and Director Patti Hart's educational record was insulting to shareholders. Third Point said it assumed that these initial statements were attributable to Thompson and were not made with the Board's approval.
"While we appreciate the Board's statement late last night that it would conduct an investigation, unfortunately, for this Board and this Company, it is too little and months too late," Third Point said.
On Thursday, Daniel Loeb sent a letter to the board of directors of Yahoo Inc. (YHOO), stating that the newly appointed Chief Executive Scott Thompson has embellished his academic credentials, which "undermines his credibility as a technology expert" and "reflects poorly on the character of the CEO."
According to Yahoo's SEC filings the newly-hired CEO Thompson "holds a Bachelor's degree in accounting and computer science" from Stonehill College.
However, in the communiqué on Thursday send to Yahoo's board, Loeb pointed out that an investigation from their part found out that Thompson graduated with a degree in accounting only, but not computer science.
"Furthermore, Stonehill College informed us that it did not begin awarding computer science degrees until 1983 — four years after Mr. Thompson graduated," Loeb said on Thursday.
Third Point's investigation also found out that Board Director Patti Hart, who chaired the CEO search committee, also has discrepancy regarding academic background.
by RTT Staff Writer
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