Yahoo! Inc. YHOO has time until late July to hold its annual meeting, which will determine who has the right to vote in the proxy contest with Starboard.
If it fails to do so, shareholders would have the right to file a lawsuit to compel the company to hold its annual meeting within 90 days.
SunTrust Robinson Humphrey’s Robert S. Peck maintained a Buy rating on the company.
Six Catalysts
Peck pointed out that there were six catalysts that investors could anticipate, starting with Yahoo issuing “a 20-day notice of the record date to determine who is entitled to vote at the annual meeting.”
Both Yahoo and Starboard are required to file preliminary proxy statements, which could also prove to be a catalyst, as could the SEC statement. The SEC has 10 days to check on the facts in the proxies.
Following the finalizing of the proxy, both parties are expected to issue “detailed persuasion letters for shareholders to understand their position,” Peck stated, while adding, “About 4 weeks before the annual meeting, both sides will make presentations to the ISS.”
Finally, about two weeks prior to the meeting, ISS and Glass Lewis are expected to issue their recommendations.
“Per our expert, ISS has historically sided with dissidents, likely because activist shareholders typically only target firms with underperforming businesses or undervalued assets,” the analyst added.
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