Third Point LLC Monday demanded an inspection of Yahoo! Inc.'s (YHOO) books and records related to the hiring of CEO Scott Thompson who is under fire from the hedge fund for having lied about his academic credentials.
Third Point also demanded investigation into the appointment of Patti Hart to the Yahoo! Board, and the selection of Board Members Peter Liguori, John Hayes, Thomas McInerney, Maynard Webb, Jr., and Fred Amoroso.
Third Point, which owns a 5.8 percent stake in Yahoo!, made the demands under Section 220 of the Delaware General Corporation Law.
Last week, Third Point chief Daniel Loeb sent a letter to the Yahoo! board demanding that CEO Thompson be terminated by May 7. Loeb urged the Yahoo Board to drop its resistance to placing the Third Point nominees on the Board.
According to Yahoo's SEC filings, the CEO Thompson holds a Bachelor's degree in accounting and computer science from Stonehill College, while in reality he graduated with a degree in accounting only.
Further, Hart, a member of the Nominating Committee and the chair of the Search Committee, herself has been charged with lying about her academic background. Yahoo!'s filing discloses that Hart holds a Bachelor's degree in marketing and economics from Illinois State University. However, Hart only holds a degree in Business Administration.
Third Point demanded the records to investigate wrongdoing or possible mismanagement by Yahoo! in connection with the hiring of Scott Thompson as the CEO; appointment of Peter Liguori, John Hayes, Thomas McInerney, Maynard Webb, Jr. and Fred Amoroso to the Yahoo! board rather than the nominees proposed by Third Point.
Third Point also wants an investigation into wrongdoing or possible mismanagement by Yahoo! in connection with the statements related to the filings on Thompson's educational background were "inadvertent."
YHOO is trading at $15.45, up $0.31 or 2.01%, on a volume of 8 million shares.
by RTT Staff Writer
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