A fight to keep or get rid of Yahoo"s current CEO Scott Thompson is apparently coming to a head today. As expected, Dan Loeb of Third Point, Yahoo’s largest outside stock holder, is now asking Yahoo"s board of directors to reveal exactly how they hired Thompson in January.
AllThingsD.com reports that Loeb and Third Point has filed a demand "under Section 220(b) of the Delaware General Corporation Law to inspect books and records relating to the hiring of CEO Scott Thompson." The demand also pertains to how other Yahoo board members were hired. Loeb and Third Point, which owns just under six percent of Yahoo"s stock, has been trying to place its own members on Yahoo"s board for some time.
In the press release, Third Point states:
Third Point believes that Yahoo! shareholders and employees will be best served if the Board accepts responsibility quickly for this latest debacle. If the Directors are truly interested in “working in a constructive manner with Third Point”, they should provide answers promptly. We believe that this internal investigation by this Board must not be conducted behind a veil of secrecy and shareholders deserve total transparency.
This move comes as Loeb revealed last week that Thompson"s official Yahoo bio (as well as the company"s regulatory filings) stated incorrectly he had a computer science degree from Stonehill College.
Yahoo later admitted that Thompson"s bio had an "inadvertent error" and said the company"s board " ... will be reviewing this matter, and upon completion of its review, will make an appropriate disclosure to shareholders." However, Loeb demanded that Yahoo fire Thompson before today or he would take "further action". Obviously, he followed through on that promise.