Back in the Roaring 1980s, Carl Icahn was known as a prototypical corporate raider as he went hostile on a myriad of old-world companies such as B. F. Goodrich and American Can.

Now, in his early 70s, Icahn hasn't slowed down much. Funny enough, these days he's targeting tech companies, like BEA, Motorola (NYSE: MOT) and, of course, Yahoo! (NASDAQ: YHOO). Hmmmm... maybe these companies have become bloated and mature -- just like the laggards of the 1980s?

Perhaps so. After all, Icahn's strategy is to agitate for change, such as for cost cutting, share buybacks and higher dividends.

As for his pursuit of Yahoo (which involves a proxy fight), it's certainly a gutsy play. Simply put, there's no guarantee that Microsoft (NASDAQ: MSFT) will come to the table again. So far, the company is doing a good job in showing disinterest.

MAJOR PAPERS:

• According to internal company and agency documents, the Wall Street Journal reported that the FAA is investigating into why AMR Corporation's (NYSE: AMR) American Airlines ordered mechanics to skip specific safety instructions to detect damage to planes from potential lightning strikes.
• In order to compete more effectively against Apple Inc's (NASDAQ: AAPL) iPhone, the Wall Street Journal reported that Research in Motion Limited (NASDAQ: RIMM) is planning to introduce "Thunder," a touch-screen version of its BlackBerry device.

OTHER PAPERS:

• Yahoo! Inc (NASDAQ: YHOO) is trying to quickly put the finishing touches on a search advertising deal with Google Inc (NASDAQ: GOOG) as billionaire Carl Icahn launches a proxy fight for control of Yahoo's board, according to the New York Post. Yahoo! hopes to announce a deal with Google to create an open platform system within the next week, two inside sources said.
• The New York Post reported that a partnership of MGM Mirage (NYSE: MGM) and investment company Dubai World may seek to buy the Drake Hotel site from developer Harry Macklowe. If a deal is reached, MGM and Dubai World would assume $580M in defaulted debt and interest, inside sources said.

What a fabulous defense. The Yahoo! (NASDAQ:YHOO) board has written Carl Icahn about his plan to run his own slate of directors in a proxy war. The portal's governing body reasons that because Icahn was not in any of its meetings and did not attend negotiations with Microsoft (NASDAQ:MSFT) that the billionaire can't understand why Yahoo! is worth more than $33 a share.

In a letter run in The Wall Street Journal, Yahoo! writes that the company's board "remains the best and most qualified group to maximize value for all Yahoo! stockholders."

The reasoning by the board is flawed to the bone. Whether Icahn or any other shareholder attended meetings is beside the question. Yahoo!'s value in the market before the Microsoft bid was $19. Wall Street placed that value on the company because it had repeatedly put out disappointing results. The bad numbers cost former CEO Terry Semel his job. Yahoo! has less than 25% of the US search market, and that number is falling. To argue that the board understands why the company is worth $37 a share is both arrogant and has no basis in fact.

The other part of the Yahoo! reasoning is based on the idea that management's projections for the next three years create a value for the company well beyond its current share price. This does not take into account that no one believes that Yahoo! can hit the numbers. The Paulson hedge fund, one of the largest shareholders in the portal company, has already said it will back the Icahn bid. So have other owners of the company's stock.

Yahoo!'s board cannot simply dismiss arguments about the value of the company because it has talked in private and come up with higher numbers. "If wishes were horses, all the beggars would ride."

Douglas A. McIntyre is an editor at 247wallst.com.

Well, maybe Icahn can save them from themselves. Who? Yahoo!'s board of course.

Seems Carl Icahn, whom earlier reports had considering moving in on Yahoo! Inc. (NASDAQ: YHOO)'s board, has made a decision. The billionaire activist investor, who has amassed some 50 million shares of the internet portal company to a 3.6% stake, is planning "to move ahead with plans to run a dissident board slate at Yahoo," according to Reuters.

A Reuters source said that already he has lined up at least 12 potential board candidates and could announce the slate as early as tonight, ahead of Thursday's deadline.

It's not just that Yahoo! has so offhandedly rejected Microsoft Corp. (NASDAQ: MSFT)'s attempts to buy it, but it's also -- and probably mainly -- the way the company has been managed for some time now. It's not just Jerry Yang, the current CEO, but his predecessor Terry Semel as well. Yahoo! has been behind the curve in technology and trend, not only losing market share in search, but mainly failing to capitalize on its assets and the traffic they generate.

Already following the early reports today, Yahoo shares finished the day up 2.18%. Now, in after-hours it's gaining another 1.5%. Yahoo! investors seem to put their trust in Icahn.

Recently I posted a Serious Money metrics story that included Microsoft Corp. (NASDAQ: MSFT) and Yahoo Inc. (NASDAQ: YHOO) comparisons along with six other stocks. Until now I have not felt very strongly about the merits of Microsoft's offer to acquire Yahoo! and merge assets and features.

I was leaning toward the price is too high camp, but now, after Microsoft has withdrawn the offer and I have looked at the current state of affairs of both companies, I think it did the right thing and may have avoided a nightmare.

To bring Yahoo! into the fold, Microsoft would have had to find enough cost savings by eliminating overlapping departments or it would have had to hope it could double Yahoo's earnings. If not, the acquisition would unduly weigh down the mother ship, because Microsoft's P/E Ratio of 17.08 is half that of Yahoo!'s 34.25.

By saying "no" to Microsoft (Nasdaq: MSFT)'s buyout bid, Yahoo! (NASDAQ: YHOO) thought there would be no more distractions.

Maybe not.

Yahoo! now has a new pesky shareholder -- Carl Icahn, the shareholder activist -- who according to CNBC has accumulated a 50 million share stake in Yahoo. And it looks like Icahn is putting together a proxy fight.

Icahn loves to battle senior managers and boards. He has been doing this for decades, and seems to get better and better (and the deals get bigger and bigger).

He has a huge war chest (his personal fortune). He also has his own hedge fund, and more importantly, he has lots of credibility with the Street.

Icahn won't take any excuses from Yahoo!'s CEO, Jerry Yang. If anything, he's going to make Yang's life miserable, so as to pad his pockets.

In other words, just when it seemed things couldn't get more interesting, the Yahoo! saga has been elevated to a new level... of excitement.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

For the past year, Circuit City (NYSE: CC) has done a nice job short-circuiting its shareholders. But lately, there has been hope.

In fact, today the company essentially said it's "in play" for a sale. That is, it will allow Blockbuster (NYSE: BBI) – which has expressed buyout interest – to check out the books.

Although, it helped that billionaire activist investor, Carl Icahn, has been pushing for a deal. In a letter to Circuit City, he said he'll write a check to buy the company if Blockbuster can't come up with sufficient financing.

Yet, the question lingers: does a combination makes sense? After all, both Circuit City and Blockbuster are ailing. So why would a merger of two duds turn into a great entity? I seriously doubt it's something that frightens the folks at Best Buy (NYSE: BBY).

Then again, Circuit City may really be allowing itself to be sold to another player. For example, the company put an end to its proxy fight with Wattles Capital Management, which got three board seat. Oh, and Circuit City has retained Goldman Sachs (NYSE: GS) to explore strategic alternatives.

Thus, for the most part, Icahn is playing his typical role as the instigator. Keep in mind that he can be pretty tough to negotiate with – especially when you're selling your company to him.

And, so far in today's trading, Circuit City's shares are up 8%.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

When Blockbuster (NYSE:BBI) said it would buy Circuit City (NYSE:CC), it may not have occurred to many on Wall Street that the movie rental company did not have the money to do the deal.

Surprise.

According to The Wall Street Journal, "Concerns about Blockbuster's methods for financing a bid contributed to a sharp fall in the company's shares when it announced its move last week." Blockbuster investor Carl Icahn may help put up some of the capital and there is cash on the Circuit City balance sheet.

Part of the argument for Circuit City being a good buyout target is because its shares are down more than 40% in the last six months. Those who bother to look at a stock chart will see that Blockbuster shares are down by the same amount during that period. Circuit City now has a market cap of $740 million. Blockbuster's is only $605 million.

All of this data is simply data. The biggest reason for Blockbuster to drop its bid is that, if it has not been able to fix its own company, how does it expect to fix Circuit City?

Douglas A. McIntyre is an editor at 247wallst.com.

After Blockbuster (NYSE: BBI) announced its bid for Circuit City (NYSE: CC) in the $6-8 range this morning, Circuit City replied in a press release that "to date Blockbuster has been unable to satisfy Circuit City and its advisors that Blockbuster's proposal could be financed."

Now the Wall Street Journal is reporting (subscription required) that "Mr. Icahn, a Blockbuster director whose companies own about 16% of Blockbuster's Class A shares, has agreed to backstop Blockbuster's rights offering if it cannot obtain the financing elsewhere, according to Circuit City investor Mark Wattles."

All of this raises an interesting question: has Mr. Icahn gotten daft? Blockbuster shares are down more than 16% on the news of this offer, strong evidence that, rightly or wrongly, Icahn is seeing something investors don't.

In any case, Icahn's backing removes one big stumbling block from this deal's path, as there is no question that he has the resources to make it happen. Even so, at its current price of $5.08, Circuit City is trading at a wide discount to the $6-8 offer contemplated in the letter. Perhaps people think King Icahn will change his mind.

"Carl Icahn - one of Wall Street's most renowned and successful investors - is on another mission; this pitbull is sinking his teeth into one of the companies in our portfolio - Enzon Pharmaceuticals (NASDAQ: ENZN)," notes Marc Lichtenfeld.

In Xcelerated Profits Report, the senior analyst and noted healthcare sector expert takes a look at the small cap biotechnology, which is involved in developing products for the treatment of cancer.

"With an infamous reputation for diving into stocks that he perceives as undervalued and shaking up management teams in order to boost shareholder value, Icahn us one of the best 'business partners' we could have.

"One of the big reasons why we recommended Enzon was because some major institutional investors are clamoring for change at the company. They contend that if Enzon was better at maximizing its true potential, the stock could easily vault from its current undervalued state and generate some real wealth for its shareholders.

MAJOR PAPERS:

• The Wall Street Journal reported that private loans under the Federal Family Education Loan, or FEEL, program have begun to give way to the federal direct loan program, as private lenders run into subsidy cuts and problems raising capital. To date about 60 colleges and universities have made the switch.
• Carl Icahn, a 6.3% Motorola Inc (NYSE: MOT) shareholder, has sued the company to get board of director documents, turning away offers of two board seats, the Wall Street Journal reported. Icahn wants information about the company's unprofitable handset business.
• Ford Motor Company (NYSE: F) is expected Wednesday to announce an agreement to sell its Jaguar and Land Rover units to India's Tata Motors Limited (NYSE: TTM) for about $2B, the Financial Times reported.

OTHER PAPERS:

• According to the Business Review, New York State Senator Charles Schumer is planning to 'reveal details' of a conversation he had with the CEO of Advanced Micro Devices Inc (NYSE: AMD) on March 21 about the company's plans to build a $3.2B computer chip plant in Saratoga County.

If you are a longtime shareholder of Time Warner Inc. (NYSE: TWX), you are very patient indeed. You can count me among you, and you can count a thousand times we've had carrots dangled in front of us that gave us hope we would see some nice gains in our shares.

I am pondering why I am still hanging on. My cost basis was $12.10 and we sold half our shares in the low $20's amid the flurry of news about Carl Icahn, share buy backs and breaking up the company. I sold some stock and he sold some stock, I kept some shares and he kept some shares. Mine are of little consequence except to me. His are of the utmost importance to everyone.

As long as Carl still has some hope, should we? TWX is trading around $14 these days. This is a story of a company going nowhere fast. It has been improving AOL over the past few years and the site is very good in my estimation. But that does not seem to be producing much growth.

As AOL improves, so do the competitors and to a large part the status quo continues. From my perspective, the Web business is just a spending game where the stakes keep increasing but the rewards are not always tangible. (Disclosure: AOL is the mothership for BloggingStocks.com which by many metrics has been very successful, but our success has limited impact on AOL's overall revenue).

Yesterday I heard one of many rumors about what might happen to Washington Mutual (NYSE: WM) and this one concerned "my pal Warren" having an interest in acquiring a position in the bank. At first I paid no attention but then I thought about how beautiful that would be. For Warren Buffett, it would elevate business to an art form, something he is admired for the world over.

In a previous post, Icahn should raid WaMu before Chase or Wells -- Act III, I had some thoughts about the corporate raider and value builder and all the strategic ramifications these intertwined companies might have; but that was all business.

For Warren Buffett, the Oracle of Omaha and chairman of Berkshire Hathaway (NYSE: BRK.A), a merger would surely be a thing of beauty. You see my fantasy goes like this: Berkshire acquires shares of WaMu in the open market, building a position as Buffett so often does in an undervalued company until he controls 8% to 10% of the stock. He then takes a seat on the board and creates his own merger & acquisition committee. From there, he negotiates a buyout with none other than Wells Fargo (NYSE: WFC) another bank he holds a major position in, a position that has been growing.

Many readers have been intrigued by my recent posts (Will Chase (JPM) or Wells Fargo (WFC) buy WaMu (WM)? and Wells chasing Chase for WaMu -- Act II) regarding various strategic scenarios that might make sense for either J. P. Morgan Chase & Co. (NYSE: JPM) or Wells Fargo & Company (NYSE: WFC) to acquire Washington Mutual, Inc. (NYSE: WM).

If something is happening along these lines, it is all happening quietly behind closed doors. More than one reader suggested that no deal is possible because the Washington Mutual CEO, Kerry Kilinger, does not want to give up his throne and has too high an opinion of himself and the value of the company.

From my perspective this is a deal that has to get done, and if the CEO stands in the way of shareholder, employee, and customer interests he has to go. Time to bring in the corporate raiders -- you listening Carl Icahn; can a deal be done Norman Peltz? Hey Eddie, maybe you could make back the money you lost on Citigroup (NYE: C)! If there were ever a great opportunity this seems like it. The raiders do serve a market purpose.

There are potential buyers waiting in the wings so the raiders could move in friendly like, or do it the hard way, buying in at depressed stock prices, forcing Killinger into submission and doing a quick flip. I think even 'my pal Warren' of Berkshire Hathaway (NYSE: BRK.A), a major investor in Wells Fargo, must be doing some heavy duty pondering on the subject.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I own shares of BRK.B and WM.

I'm blogging. You're probably blogging. It's the "in" thing to do. And now, news surfaced this week that billionaire investor Carl Icahn may begin blogging on his corporate website, The Icahn Report.

In Carl Icahn prepares for a blogging debut, News.com explains that "Icahn, who is making a second run at Motorola's board, is considering using the blog to highlight reports that either he or his associates pen on a range of corporate governance topics, from excessive pay at underperforming companies to moves that fall short of being favorable to shareholders, according to a report in The Wall Street Journal."

In the wake of this news, ReadWriteWeb ran an article called A Guide to Billionaire Bloggers, showcasing some current billionaire bloggers and several they would want to see blogging.

It's an interesting trend that wealthy, activist-type investors are turning to new media to champion their causes. Mark Cuban uses his blog to write about lots of different things, including business.

So, I welcome Icahn's entrance into the world of blogging. He'll have to work hard to keep up with the likes of me...

Zack Miller is the Managing Editor of IsraelNewsletter.com and a former equity analyst for a leading multinational hedge fund.