Yahoo! has rejected billionaire investor Carl C. Icahn's accusations that the Internet company's board of directors had acted irrationally in what he called the "botched" merger negotiations with the Microsoft.
Icahn, who has amassed 59 million Yahoo! shares in recent days, in a letter to Yahoo!'s chairman Roy Bostock on Wednesday said: "It is clear to me that the board of directors of Yahoo! has acted irrationally and lost the faith of shareholders and Microsoft".
He said he intended to wrest control of the board and return the company to the bargaining table, adding that Microsoft's final $33-a-share bid was a "superior alternative to Yahoo!'s prospects on a stand-alone basis".
Responding to the letter on Thursday, Yahoo! chairman told Icahn, "Unfortunately, your letter reflects a significant misunderstanding of the facts about the Microsoft proposal and the diligence with which our board evaluated and responded to that proposal".
He said that Yahoo! board had turned down the Microsoft proposal because it significantly undervalued the Internet company. A fair-minded review of the factual record, Bostock said, would lead to one conclusion that Yahoo board "remains the best and most qualified group to maximize value for all Yahoo! stockholders".
"We do not believe it is in the best interests of Yahoo! stockholders to allow you and your hand-picked nominees to take control of Yahoo for the express purpose of trying to force a sale of Yahoo! to a formerly interested buyer who has publicly stated that they have moved on."
There was currently no acquisition offer on the table from Microsoft or any other party, Yahoo! chairman said, adding the company was willing to consider any proposal if it offered Yahoo stockholders full and certain value.
