Wednesday, June 11, 2008
Yahoo's employee severance plan, adopted as a response to Microsoft's takeover offer and triggered by a change of control, would be triggered if Carl Icahn is successful in his bid to take control of the board of directors, according to Yahoo. The plan calls for severance benefits to be paid to certain employees if their employment is terminated after a control change. Yahoo estimated the costs of the plan between $514-$845 million; Icahn puts the costs at a much higher figure. Icahn has called for the board to rescind the plan, and a shareholders suit in Delaware seeks to have a court invalidate the plan. WSJ, Yahoo Says an Icahn Win Triggers Plan.