Microsoft Corp. (NASDAQ: MSFT) will start a proxy fight for Yahoo! Inc. (NASDAQ: YHOO) "unless Yahoo reverses course and enters into talks' regarding its $44.6 billion unsolicited offer," according to The New York Times' DealBook blog. I'll believe it when I see it.First of all, proxy battles are a gigantic pain in the butt. The bigger the deal, the larger the hassles. There are lawyers, proxy solicitation firms and deal PR firms to pay. M&A reporters at the major media outlets have to be wooed. It takes forever.
Yahoo's board probably won't meet until June. Plenty of things can happen between now and then. Probably, the only reason why Microsoft is even considering a proxy fight is because Yahoo does not have a staggered board, meaning all of its directors are up for renomination this year.
Investors need to remember that the media loves to hype potential battles like proxy battles even if the chances of them actually happen are quite remote.
Freelance writer Jonathan Berr edits the blog Ketchup and Eggs.
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