• Bloomberg, Monday, March 9, 2009 12 PM

Yahoo won an approval of a judge's settlement mandating changes to a severance plan put in place last year that makes it difficult for the company to be acquired by potential suitors. According to Bloomberg, Delaware Chancery Court Judge William B. Chandler III approved the accord, which resolves investor lawsuits over Yahoo executives' decision last year to rebuff Microsoft's buyout offers. Basically, shareholders sued the company after ex-CEO Jerry Yang rejected a bid from Microsoft to acquire the company for as much as $47.5 billion last year.

One lawyer said the settlement amounted to "an extraordinary victory" for investors seeking to remove stumbling blocks to a potential acquisition. Yahoo also expressed satisfaction with the settlement. "We are very pleased that the settlement was approved because we believe it is in the best interests of the company and our shareholders," said Yahoo spokeswoman Kim Rubey.

Nevertheless, Benchmark Co. analyst Brent Williams doesn't think the settlement would change Microsoft's mind about taking the company over. "This doesn't even come close to fixing the big issues Microsoft has with buying Yahoo," he said. "This has always been a minor issue."

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