Activist hedge fund investor Third Point, which has called for Yahoo Inc. Chief Executive Scott Thompson’s ouster over resume padding, sent a legal letter to the internet company demanding it provide access to all documents relating to the hiring of the CEO.
The hedge fund’s CEO Daniel Loeb, who has been waging a public battle to place his company’s nominees on Yahoo’s board, had issued an ultimatum to Yahoo on Friday demanding it sack Mr. Thompson by noon ET on Monday.
The demand letter on Monday begins the process under a Delaware corporation law that allows a shareholder to inspect a company’s books if that person has a proper purpose and meets certain procedural requirements.
Yahoo, whose revenue slid by more than a fifth last year, brought in Mr. Thompson, PayPal’s former president, as chief executive in January, five months after Carol Bartz was fired.
Third Point, which last week revealed the discrepancies in Mr. Thompson’s education record, wants Yahoo to publicly reveal the process by which Mr. Thompson was vetted and disclose all minutes of any board meeting where his candidacy was discussed.
Yahoo board has said it is investigating the issue.
“We believe that this internal investigation by this Board must not be conducted behind a veil of secrecy and shareholders deserve total transparency,” Mr. Loeb said in his latest missive on Yahoo.
Mr. Loeb, who manages Third Point’s $9-billion in assets, has been a thorn in the side of Yahoo’s board for the last couple of months since he took a 5.8 per cent stake in Yahoo that ranks Third Point among the company’s largest institutional shareholders.
Mr. Loeb started out as a trader. He opened shop in 1995 with just $3.3-million in assets under management and operated in space borrowed from David Tepper’s Appaloosa Management, a New Jersey-based hedge fund.