Wall St. Watch: Yahoo CEO Creates Void, Chesapeake Finds Love
Yahoo! Inc.’s (NASDAQ:YHOO) CEO Scott Thompson has left the company over the more than week long controversy over his faux computer-science degree. All Things D reported the story and said the company has said “cause” is the reason for his exit; this could enable them from paying a large payoff possibly due to Thompson’s recent thyroid cancer diagnosis. With Thompson’s departure, it could be seen as a win for Yahoo activist investor, Third Point’s Daniel Loeb. He will get a seat on the board along with two of his nominees.
JPMorgan’s (NYSE:JPM) employees in the thick of the $2.3 billion trading loss will be leaving the company, according to The Wall Street Journal. This will include investment chief Ina Drew, who oversees the unit that incurred the losses, and “London whale” Bruno Michel Iksil. Additional staff could be fired including all of the London staff in JPMorgan’s chief investment office.
Avon (NYSE:AVP) shares jumped 8.4 percent in premarket trading after the company said that it will review Coty’s $10.7 billion takeover bid; it is expected to answer within a week. On Coty’s end, it has said it will discontinue making additional public overtures to purchase the company just as long as Avon will let them run due diligence.
Carl Icahn is expected to announce he has a “significant” position in Chesapeake Energy (NYSE:CHK), reported The Wall Street Journal. On Monday morning, the company has a scheduled investor call in the morning. In other news, Noster Capital, who is long Chesapeake, has asked for Chesapeake CEO Aubrey McClendon to leave, noting that other CEOs have left for “far lesser infractions.”
LightSquared Inc. started preparing for a bankruptcy filing on Sunday after lender negotiations failed to stop a debt default. The company and its lenders have a 5 p.m. Monday deadline to reach a deal and keep the company out of bankruptcy. The Wall Street Journal is reporting the two sides are far part.