Yahoo Inc (YHOO) $21.80 -2.90%
Yahoo (YHOO, news, chart) is seeing action early Monday after the company announced that it reached an agreement to settle a proxy battle with activist shareholder Carl Icahn. Under the terms, Yahoo will expand its board by two members and appoint Mr. Icahn to the board. Eight members, including Chief Executive Jerry Yang will stand for re-election. The board will also be expanded to include 11 members, with the two remaining seats chosen from a list of nine candidates running as part of Mr. Icahn’s slate. In the equity market, reaction to the news seems to be mild disappointment, as shares are trading down 63 cents to $21.81. However, in the options market, some bullish trading is being seen, with 26,000 calls and 8,000 puts trading on the day. The September 22.5 and 25 calls are the most actives on what appears to be bullish spread trading. Earnings due out tomorrow after the close.
Category: All Stocks, Large Cap Stocks, Software & Computer Services
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About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.
