Update: Subprime ace backs Icahn in Yahoo fight
Carl Icahn isn’t the only big-name investor taking a big stake in Yahoo (YHOO). Paulson & Co., the hedge fund run that made a killing last year betting against subprime mortgage securities, bought 50 million Yahoo shares in the first quarter, which ended March 31, a Securities and Exchange Commission filing shows. John Paulson, the manager who made $3.7 billion last year on his timely subprime wager, made the big Yahoo purchase during a quarter in which Yahoo fielded an unsolicited bid from Microsoft (MSFT). Microsoft has since walked away from that deal, but Icahn is leading a proxy fight against Yahoo’s board, perhaps in hopes of turning up the heat for renewed deal talks. If he succeeds, Paulson stands to make a few more bucks.
Update: Paulson will support Icahn’s effort to unseat the Yahoo board, Bloomberg reports. “We intend to support the Icahn slate but sincerely hope that Yahoo will negotiate an agreement with Microsoft, thereby making a proxy fight unnecessary,” Paulson said in a statement emailed to Bloomberg. “We were disappointed that Yahoo failed to reach an agreement with Microsoft.”
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