Third Point LLC, the $5.7 billion hedge fund run by acid penned yoga enthusiast Dan Loeb, is getting into the Yahoo acquisition trade, Reuter's great Dane Hamilton is reporting. The fund has accumulated a stake of over 5 million shares, and may build a 10 million share stake. At the end of March, Third Point held only 1 million shares.
Texas oil legend T. Boone Pickens revealed this morning that he owns 10 million Yahoo, and plans to vote them in support of Carl Icahn. Paulson & Co, another large hedge fund that is bursting with funds after making a killing last year shorting subprime, disclosed last week that it holds 50 million shares and is supporting the Icahn move. Capital Research owns 85 million shares and Legg-Mason owns 83 million. Both are thought to favor a deal to sell Yahoo to Microsoft.
Third Point backs Icahn in Yahoo fight [Yahoo]
Posted by guest , May 20, 2008 3:28PM
Dan Loeb from Third Point. Isn't he the guy who fired Jim Kelly? Anybody know what really went on there?
Posted by guest , May 20, 2008 4:38PM
We have a real bunch of yahoos at this trough. Who will go hungry?
Posted by onetwo , May 20, 2008 4:39PM
I would bloviate on this all here, but posting a link is easier. I hate posting links to my site on others though (this may be my first ever).
http://1-2knockout.typepad.com/12_knockout/2008/05/everything-must.html
Posted by guest , May 20, 2008 5:19PM
Good article, onetwo.
I can't guess the thought processes of all of the players but the relatively new arrivals (Icahn/Paulson & Co.) are just looking for a quick score.
Even if MSFT lowballs them a little in the end, they'll still get a 20%+ premium on what they bought and, at the volume they are buying, that's not a bad take for less than 3 months of work.
Posted by onetwo , May 20, 2008 7:16PM
@5:19 - thanks. Although i dont think we know where they bought their shares. Icahn bought down there, but who knows when the follow-ons did. Some of the later entrants could lose a lot of cash.
1-2
Posted by onetwo , May 20, 2008 7:18PM
ahem...unless someone checked icahn's 13d for his vwap...which im too lazy to right now.