Yahoo board battle may begin within the next week

A potentially nasty battle to reshape Yahoo's board of directors will begin within the next week unless the troubled Internet company submits to the demands of a major shareholder.

Third Point LLC, a hedge fund that owns a 5.8 percent stake in Yahoo, issued its ultimatum in a letter Wednesday to company CEO Scott Thompson.

The letter, released in a regulatory filing, comes a month after Third Point first announced that it wanted four seats on a Yahoo board already undergoing an overhaul.

The board currently consists of 11 directors, but Chairman Roy Bostock and three other members announced they will step down at Yahoo's annual meeting. The departures are part of an attempt to placate shareholders frustrated with a long-running financial funk that has depressed the company's stock price. Read more...