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Largest Shareholder Cans Yang, Yahoo Board

Yahoo and its CEO Jerry Yang received a thorough haranguing from respected portfolio manager Gordon Crawford, whose firm, Capital Research Global Investors, is Yahoo's biggest shareholder in separate reports. "I'm extremely disappointed in Jerry Yang," Crawford told The Wall Street Journal. "I think he overplayed a weak hand. And I'm even more disappointed in the independent directors who were not responsive to the needs of independent shareholders."

Responding to comments made by Yahoo Chairman Roy Bostock that he was pleased so many shareholders supported the board's decision, Crawford told The New York Times. "I would love to know who these shareholders are. It's none of the ones that I talked to today. Everybody I talked to would have sold their stock at $34," he said, adding: "I'm hoping that there is such an outpouring of outrage that the board is embarrassed into revisiting this thing, but I'm not optimistic about that."

Bostock said that $37 per share-the price point from which Yahoo apparently wouldn't budge-"was not a take-it-or-leave it statement." That indicates it was more of a ceiling price, which means that Yahoo probably would have accepted a bid for $35 or even $34 per share. As Silicon Alley Insider's Henry Blodget points out, the so-called "substantial undervaluation" then amounts to as little as $1 per share.

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