Major Yahoo shareholder demands vote recount

05 August 2008

There's seems to be no end of troubles for Yahoo CEO Jerry Yang. After successfully fending off hostile overtures from Microsoft that saw his position at the helm of the company being threatened by hostile investors, he may have considered Friday's vote of confidence from shareholders as temporary respite. (See: Yahoo board wins vote of confidence)

However, the respite has proved to be all too temporary with a large shareholder asking for a review of Friday's vote, suggesting that Yang and his management team may not have received as much support as the current tally shows.

Capital Research Global Investors, which owns a 6.2 per cent in the company, has asked independent vote counter Broadridge Financial Solutions to look into the results of the closely watched election.  Capital World Investors, a related fund that owns nearly 10 per cent of Yahoo's stock, didn't make the same request.

Capital Research Portfolio Manager Gordon Crawford has been vocal and has expressed his anger and disappointment with Yang and the board at Yahoo in the course of the negotiations with Microsoft. He had indicated he might vote against some Yahoo directors - particularly Yang and Chairman Roy Bostock - to punctuate his displeasure with the failed Microsoft negotiations.

Since Microsoft walked away, Yahoo shares have plunged 32 per cent, closing Monday at $19.38, down 42 cents.

Yahoo stood by the results certified by an independent inspector after its annual meeting last Friday.