Yahoo Board Members Could Be Endangered by Carl Icahn Proxy Fight to Oust Them

(NewsVisual, powered by IntellectSpace) -- Although the withdrawal of Microsoft Corp (NASDAQ: MSFT) from the scene might have been greeted by many at Yahoo! Inc (NASDAQ: YHOO) with a sigh of relief, the turmoil for Yahoo’s Directors could be at just its beginning point as a late-breaking business-news story suggests.

"Billionaire investor Carl Icahn has amassed a stake in Yahoo Inc. and is leaning toward launching a proxy contest to unseat at least part of Yahoo's board, according to one person familiar with the situation," The Wall Street Journal reported in an online article late Tuesday afternoon.

"The person said that Mr. Icahn was unsure whether he would nominate a full or partial slate of candidates to try to replace Yahoo's 10-person board," The Journal added.

If Mr. Icahn does decide to wage a proxy war, he’s unlikely to find the current crop of Yahoo Directors to be an acquiescent or pusillanimous bunch whom Icahn can count on to turn tail as soon as they are confronted with brass-knuckle tactics.  After all, these guys just withstood a frontal assault from Microsoft.

In addition to that, several of Yahoo’s Directors have endured tough fights in other corporate battles.

Did High-Level Personal Connections Help Drive the Merger Deal Between HP and EDS?

(NewsVisual, powered by IntellectSpace) -- The Hewlett-Packard Co. (NYSE:HPQ) announced on Tuesday that it was acquiring the Electronic Data Systems Corp. (NYSE:EDS) for approximately $13.9 billion or for the price of $25 per share, according to an HP press release.

The Boards of Directors of both HP and EDS have given their approval of the deal, HP reported.

EDS CEO/President/Chairman Ronald A. Rittenmeyer will continue to lead EDS after the deal closes, and Rittenmeyer will report to HP CEO/Chairman Mark Hurd.

"The combination of HP and EDS will create a leading force in global IT services," said Mr. Hurd.

"Together, we will be a stronger business partner, delivering customers the broadest, most competitive portfolio of products and services in the industry. This reinforces our commitment to help customers manage and transform their technology to achieve better results," Mr. Hurd added to explain the rationale for the merger.

Although Mr. Rittenmeyer said that this transaction will be highly beneficial to stockholders, he went on to emphasize that the new joint company will have certain competitive advantages in the marketplace:

"It's also beneficial to our customers, as the combination of our two global companies and the collective skills of our employees will drive innovation and enhance value for them in a wide range of industries," Rittenmeyer said.

The merger is likely to experience smooth sailing because these two companies already have numerous personal connections between their top leadership teams.

Coca-Cola Must Buy New Companies to Offset Shifting Soft-Drink Tastes

(NewsVisual, powered by IntellectSpace) -- Because of shifting consumption patterns among a new generation of beverage drinkers, the Coca-Cola Company (NYSE: KO) must be nimble enough to plan for dwindling sales of its traditional products, and the company is therefore embarked on an aggressive acquisition program.

Coca-Cola “is seeking more acquisition opportunities in the fast-growing soft drinks market to expand its revenue sources, the company’s presumptive next chief executive said on Tuesday," The New York Times reported in an online article on Tuesday.

"Sales of established soft drinks are declining in the United States as people opt for the likes of bottled water and tea, which they see as healthier," The Times added as an explanation of why the company views the acquisitions as necessary.

The company’s Directors must provide over-sight to ensure that whatever new companies it purchases will have the potential for increasing revenues.

Can Sprint Nextel’s Directors Help the Ailing Telecom to Turn Itself Around?

(NewsVisual, powered by IntellectSpace) -- As the downward spiral in earnings continues at Sprint Nextel Corp (NYSE:S), which announced on Monday $500 million in first-quarter losses, investors will be carefully scanning company statements for any sign that the company has a turnaround in the offing.

The company’s Chief Executive Officer made comments that seemed to promise investors that the company does indeed have a plan:

“While the business will continue to face challenges in the short term, we are making progress in methodically attacking the sources of our performance issues. In the first quarter, we implemented a new, more focused brand campaign, we executed on our plans to take costs out of the business, and we made progress on the larger organizational and strategic decisions that we believe will lead to improved profitability in the long term," said Sprint CEO Dan Hesse.

"We have strengthened our hand with last week's 4G announcement, which captures and leverages the value of Sprint's sizable spectrum holdings, provides Sprint with additional financial flexibility, gives us a time-to-market advantage over our competitors in the important growth area of wireless broadband, and allows Sprint management to focus our resources and attention on improving the performance of our core business,” Mr. Hesse added.

Yet investors will want to know whether or not the company’s Directors have contributed their insights in the shaping of this strategy for future growth.

United Airlines and US Airways Are Closer to Deal, Reports Indicate

(NewsVisual, powered by IntellectSpace) -- On Monday morning, news reports suggested that United Airlines Inc, which is owned by UAL Corp (NASDAQ:UAUA), and US Airways Group Inc (NYSE:LCC) were closer to a merger deal that would create the country’s second largest airline.

"United Airlines is closing in on a merger with US Airways, sources say, after being spurned by Continental Airlines and Delta Air Lines," The Chicago Tribune reported in an online article.

NewsVisual created an IntellectSpace Knowledge Map that of United and US Airways that shows the following personal connections among their leadership teams:

UAL Corp CEO/President/Chairman Glenn F Tilton is linked to US Airways Director Herbert M Baum through their board service to the American Petroleum Institute.  And a less noteworthy connection exists between Mr Baum and the former UAL Corp Director Paul E Tierney via the Council on Foreign Relations.

Cablevision Buys Newsweek to Bring New Synergies to Help Spur Revenue Growth

(NewsVisual, powered by IntellectSpace) -- In its second acquisition within a one-week period, Cablevision Systems Corp (NYSE:CVC) announced on Monday that it will acquire from the Tribune Company approximately 97 percent of the Newsday Media Group.

The Group’s chief property is Newsday, one of the nation's largest daily newspapers, which serves Long Island and New York City.

Cablevision valued the deal at $632 million, its statement said.

“We admire Newsday’s strong editorial voice and reputation for quality as well as its leadership in print and online journalism. We are committed to maintaining Newsday’s journalistic integrity and important position in the marketplace,” said Cablevision Chairman Charles F. Dolan in the company’s statement.

Yet there are many critics of the deal as well. NewsVisual reported on May 8 that there was considerable investor unease over the company’s strategic plan for growth.

These concerns were addressed somewhat by the younger Dolan in the following statement:

“Both Cablevision and Newsday are in the content, customer relationship and advertising business and we see this as a wonderful fit. Adding Newsday Media Group’s superb assets to Cablevision’s portfolio presents a multitude of opportunities: to provide consumers with additional quality content on multiple platforms; expand advertising opportunities for both entities; and attract a larger audience than either company could on its own,” said Cablevision CEO/President James L. Dolan.

“We strongly believe Newsday Media Group and Cablevision share the same consumer-focused values, and we look forward to building on our mutual history in the New York area with these wonderful assets under the same umbrella,” he added.

Should Microsoft Corp’s Directors Have Approved The Company’s Facebook Deal?

(NewsVisual, powered by IntellectSpace) -- At the time that Microsoft Corp (NASDAQ: MSFT) purchased a small share of Facebook, the criticism was relatively muted, and it’s only belatedly that the deal’s critics have become more vociferous in denouncing what they perceive to be its many downsides, including its overall lack of prudence on the part of Microsoft.

"Microsoft’s October purchase of a 1.6 percent Facebook stake implicitly valued the social-networking Web site at $15 billion. Even at the time, some people questioned such an eye-popping valuation. But as the months have passed, the number is looking even more bubbly," The New York Times reported in an online article on Friday.

This raises the question as to whether the company’s Board of Directors are protecting the interests of the company’s shareholders.

NewsVisual created an IntellectSpace Knowledge Map that illustrates the business connections among Microsoft’s Directors in order to determine whether they are prepared to meet the company’s challenges.

Citigroup to Shed Assets as a Method for Restoring its Financial Health

(NewsVisual, powered by IntellectSpace) -- In an initiative that appears to be designed to restore investor confidence, as well as to shore up its balance sheet, Citigroup Inc (NYSE:C) plans to sell off huge numbers of assets, according to news reports.

"The banking giant said Friday it will sell at least $400 billion of the $500 billion in assets it identified as 'not central' to its mission, including $170 billion worth of marked-to-market assets in its investment banking division,” Forbes.com reported in an online article on Friday.

“The planned sale, which will take place over the next three years, is more than double what analysts expected," the Forbes article added.

The Directors at Citi now have a strategic plan in place that could reverse the bank’s downward decline and that could help to ensure future earnings for the bank.

Wachovia Corp Separates the CEO and Chairman Roles as Reform Measure

(NewsVisual, powered by IntellectSpace) -- In a personnel change that could be imitated throughout the corporate world as a standard reform measure, especially among hard-hit financial institutions, the Charlotte, N.C., bank Wachovia Corporation (NYSE:WB) announced on Friday that it was splitting the role of Chief Executive Officer from that of Chairman of the Board.

The bank’s new non-executive Chairman will now be Lanty Smith.

Mr. Smith has served as a director since 1987 and as lead independent director since 2000, and he is the CEO/Chairman of Tippet Capital, a merchant banking firm headquartered in Raleigh, N.C., as well as a former partner with the international law firm of Jones Day, the bank said.

"At this challenging time for the financial services industry and for Wachovia, my management team and I are pleased that Lanty agreed to assume the role and responsibilities of Chairman, freeing me to focus 100 percent of my time and attention on guiding the company through the current environment and building and delivering enhanced value for the benefit of our shareholders, customers and employees," said CEO/President and now former Chairman Ken Thompson in the bank’s statement.

The bank has several other highly experienced Directors.

JP Morgan Has Only One More Hurdle to Leap in Order to Acquire Bear Stearns

(NewsVisual, powered by IntellectSpace) -- In what appears to be the vanquishing of the next-to-the-last obstacle in the planned acquisition by JPMorgan Chase & Co (NYSE:JPM) of the failed investment-banking firm Bear Stearns (NYSE:BSC), a class-action lawsuit by a group of Bear shareholders to block the firm’s purchase has been dropped by the plaintiffs, The New York Times reported.

"A group of major shareholders in Bear, which include public pension funds and institutional investors, have withdrawn their motion seeking to block the merger, just two days before scheduled hearings on the matter, the company reported in a regulatory filing Wednesday," The Times reported in an article on Thursday.

"At this stage, Bear’s sale to JPMorgan seems all but assured. But a few holdouts are still fighting it," The Times article added.

The last holdouts, Samuel T. Cohen from Maryland and Jerome Birn from California, have still have a lawsuit pending.

At this point, however, the Directors at JP Morgan have a responsibility to make certain that the bank’s management team is ready to absorb Bear and that the team is prepared for overseeing Bear’s day-to-day operations.

This is an unwieldy task that could place the bank under enormous stress.