Big shareholder questions vote on Yahoo board

   Date:2008/08/06     Source:

A MAJOR Yahoo Inc shareholder has asked for a review of how its votes were cast in last week's re-election of the Internet company's board, raising questions about whether the opposition to the directors may have been understated.

Capital Research Global Investors, which owns a 6.2-percent stake in Yahoo, demanded the review on Monday, Capital spokesman Chuck Freadhoff said.

The unusual inquiry was first reported on the technology blog, "All Things Digital."

Capital Research wants independent vote counter Broadridge Financial Solutions to make sure the fund's votes on the Yahoo directors were accurately transmitted, Freadhoff said.

He declined to discuss how Capital Research intended to vote or what prompted the request for a review.

Capital Research Manager Gordon Crawford has publicly scolded Yahoo's leadership for its response to a US$47.5-billion takeover bid from Microsoft Corp, which withdrew the offer three months ago after Yahoo Chief Executive Jerry Yang demanded more money.

Crawford 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 percent, closing on Monday at US$19.38, down 42 cents.

Yahoo stood by the results, which were certified by an independent inspector after the company's annual meeting last Friday.

"Yahoo did not participate in the execution of the votes and was not a party to any errors which may have been made either by a voting institution or a proxy processing intermediary acting on behalf of banks, brokers and institutions," the company said in a statement.

Despite shareholders' lingering anger about the Microsoft talks, Yahoo's board encountered only a mild backlash at the annual meeting.

All nine directors were backed by at least 78 percent of the voting shareholders.

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