Last month, Yahoo!, the California-based Internet service provider, rejected a “generous” offer by U.S. software giant, Microsoft.  Microsoft’s 62 percent premium above Yahoo!’s share was aimed at maximizing synergies that existed between both companies. Microsoft hoped to gain a greater market advantage in the internet search industry while enjoying a majority share of the projected $80 billion market by year 2010.  Following Yahoo!’s rejection, some disgruntled Yahoo shareholders have sought legal remedies to voice their dissatisfaction with Yahoo’s decision.  In light of three previously decided cases, Emerging, Van Gorkom, and Disney, this article will attempt to provide a legal analysis on the breach of fiduciary duty suits against Yahoo!.
In Emerging Communication, the court addressed, inter alia, class action claims for breach of fiduciary duty. The court held that the defendants in question were jointly and severally liable to the … Read the rest
A $44 billion bid by Microsoft (“MSFT”) to acquire Yahoo (“YHOO”) may be an indicator of just how desperate Microsoft is to dominate the internet search market.  This bid may be reflective of Google’s threat to the world’s largest software maker.  With the offer on the table, analysts can only speculate about Yahoo’s response to the $44 billion possible merger.
Microsoft’s proposal is currently being evaluated by Yahoo. However, Yahoo CEO Jerry Yang may be unlikely to accept the bid, because accepting the bid may be indicative of Yang’s failure as CEO. Yang replaced former Yahoo CEO Terry Semel promising to secure a competitive share of search advertising revenue.   Notwithstanding Yang’s ego, the recent trend in Yahoo’s finances may eventually lead management to accept the bid,  given its deteriorating profits as well as a murky 2008 outlook that caused a 23 … Read the rest
On Tuesday, October 9th, London-based
SABMiller and Denver-based Molson Coors announced they would be
combining their brewing operations in the United States, creating a
brewer called MillerCoors. This move is the latest in a growing
consolidation trend among the brewers of the world’s beer. In 2002, South African Breweries purchased
Miller Brewing from Philip Morris, forming SABMiller. Molson Coors was formed in 2004 when Molson, a Canadian brewer, merged with Adolph Coors. Earlier this year, Anheuser-Busch announced that it would be importing Czechvar Beer, brewed by the Czech state-run brewery
Budejovicky Budvar NP into the United States despite a century-long legal battle over the Budweiser name. Most recently, Scotch & Newcastle, the U.K.’s largest brewer, is receiving numerous takeover bids from other major
first part of this article will examine the SABMiller and Molson Coors
United States brewing operations merger in some detail, including … Read the rest