Paulson Throws His Weight Behind Icahn
Originally Published In the News May 15, 2008 2:25 PM
____________________
John Paulson made the biggest trade in Wall Street history, and is investing some of his profits into Yahoo!’s stock as activists look to shake up the jokers running the company:
Paulson & Co, the hedge fund that won a huge bet over the last year on the subprime credit meltdown, has built up a stake of around 50 million shares in Yahoo Inc (YHOO.O: Quote, Profile, Research) in recent months, sources familiar with the matter told Reuters.
Paulson, a $30 billion “merger arbitrage” hedge fund led by veteran investor John Paulson, began increasing its stake around the time when Microsoft Corp (MSFT.O: Quote, Profile, Research) made its unsolicited offer to buy the company, the sources said.
While the Microsoft-Yahoo talks ended this month, the share build-up suggests that Paulson is betting a merger will eventually happen, particularly since billionaire investor Carl Icahn launched a proxy battle on Thursday to replace the entire Yahoo board. Reuters
If Paulson makes 6 points on the stock, he will clear $300 million. Is it worth him even getting out of bed for such a paltry sum?
Paulson hedge fund buys 50 million Yahoo shares
Reuters
Comments:
Next entry: Alpha Males Gang Up on Jerry Yang and Yahoo!
Previous entry: Paulson Joins Icahn in Yahoo! Fight
