Legg Mason Supports Yahoo Directors; Won't Back Icahn

Authored by Mark Hefflinger on July 18, 2008 - 7:50am.

Baltimore - In a major blow to dissent shareholder Carl Icahn, Legg Mason -- the asset management firm that owns 4.4% of Yahoo's (NASD: YHOO) shares -- announced on Friday that it will be supporting the existing Yahoo board, and not the dissident slate nominated by Icahn. On Aug. 1, Yahoo shareholders will vote to elect the entire board of the company.

Icahn, angered by Yahoo's rejection of Microsoft's (NASD: MSFT) takeover offer, has nominated his own board candidates, who would welcome the overtures by Microsoft.

"We have met with representatives of the current board and management, including founder Jerry Yang, several times," said Bill Miller, chairman and chief investment officer of Legg Mason Capital Management.

"We believe the current Board acted with care and diligence when evaluating Microsoft's offers."

Icahn has said that Microsoft indicated to him that it would bid again for Yahoo if his slate of candidates wins.