The major Yahoo investor who exposed an inaccuracy in Yahoo CEO Scott Thompson’s academic credentials called for the company Monday to turn over its books and records relating to Thompon’s hiring in January.
The step comes only days after activist hedge fund manager Daniel Loeb demanded the Yahoo CEO’s ouster for misrepresenting his educational background in his bio for more than a decade. In a Friday letter to the company’s board of directors, Loeb had threatened legal action if Thompson wasn't fired by noon ET today.
After confirming Thompson had not received the computer science degree from Stone Hill College listed on his resume and reported in a Yahoo Securities & Exchange Commission filing, the board said it begun an internal review of the matter. It initially had explained the misrepresentation as an “inadvertent error.”
In his latest salvo, Loeb, whose Third Point fund holds a 5.8% stake in Yahoo, has demanded under Delaware law that Yahoo open up its investigation of Thompson's hiring. That includes looking into wrongdoing or possible mismanagement by Yahoo executives or board members.
“If the Directors are truly interested in 'working in a constructive manner with Third Point,' they should provide answers promptly. We believe that this internal investigation by this Board must not be conducted behind a veil of secrecy and shareholders deserve total transparency,” Third Point said in a statement accompanying its letter to the board Monday.
Loeb had confronted Yahoo with the Thompson’s bogus academic credentials last Thursday, the latest escalation in a proxy fight Third Point is waging against the company to gain control of the board. Yahoo appointed four new directors in March, rejecting an alternate slate proposed by Third Point and including Loeb.