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Has Legg Mason Sunk Icahn's Proxy Fight

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Carl Icahn's proxy fight to gain control of Yahoo's board of directors may have suffered a mortal blow today. Legg Mason, which owns a 60.7 million share stake of Yahoo, announced its support of management's slate of directors. While Legg Mason's stake amounts to just 4.4 percent of the company, it probably carries far more weight than that due to its persuasive influence over other fund managers.
Legg Mason chairman Bill Miller endorsed the actions of the current board, adding some politesse that won't make Icahn happy at all.
"In general, we believe it is appropriate for large shareholders to have representation on corporate boards if they so desire," Legg Mason said. "Mr. Icahn's slate includes people experienced in technology, advertising, capital markets and governance. We would prefer that the company and Mr. Icahn reach a mutual agreement on the composition of the Board and end this disruptive proxy contest."
This is being read as a deathblow to Icahn's proxy fight but Icahn is a wiley guy. Maybe he's still got another trick up his sleeve.
Blow To Icahn: Legg Mason To Support Incumbent Yahoo Slate [Paid Content]


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