Yahoo settles with Icahn to avert shareholder fight

SUNNYVALE, California - Yahoo has reached a settlement with activist investor Carl Icahn to avoid a battle for control of the company.

The agreement announced Monday comes before the Aug. 1 shareholders vote.

Under the agreement, eight members of the current board will seek re-election. Icahn will be appointed to the board, and two other seats will be filled based on a list of nine candidates recommended by Icahn.

Icahn had wanted to replace Yahoo Inc.’s directors with his own hand-picked slate to negotiate a sale of all or part of Yahoo.