May 15 (Reuters) - Financier Carl Icahn launched a proxy battle on
Thursday to force Yahoo Inc <YHOO.O> to reopen buyout talks with
Microsoft Corp <MSFT.O>, saying the Yahoo board had acted
"irrationally" in refusing its $47.5 billion offer.
Double-click on the codes in the brackets to see Reuters
coverage.
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LATEST STORIES
> Icahn to battle Yahoo to accept Microsoft bid [ID:nN15327298]
> Investors laud Icahn's Yahoo move, promise support [ID:nN15308938]
> Yahoo, Google talks have not cooled -source [ID:nN15374057]
> Paulson hedge fund backs Icahn's Yahoo slate [ID:nN15329305]
> Paulson hedge fund buys 50 mln Yahoo shares [ID:nN15279457]
> Icahn to run board slate for Yahoo - sources [ID:nN14536842]
> TEXT-Icahn letter to Yahoo chairman [ID:nN15278966]
OPINION
> Yahoo board brought this on themselves: Eric Jackson [ID:nN14536422]
BACKGROUND
> Microsoft walks away from Yahoo bid [ID:nN04337053]
> Timeline of Microsoft attempt to buy Yahoo [ID:nN04336460]
> Yahoo factbox [ID:nN04336875]
> Microsoft factbox [ID:nN04326315]
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Page Editor: Braden Reddall, RAM Equities, +1 415 677 2543
Keywords: YAHOO/
May 15 (Reuters) - Financier Carl Icahn launched a proxy battle on
Thursday to force Yahoo Inc <YHOO.O> to reopen buyout talks with
Microsoft Corp <MSFT.O>, saying the Yahoo board had acted
"irrationally" in refusing its $47.5 billion offer.
Double-click on the codes in the brackets to see Reuters
coverage.
................................................................
LATEST STORIES
> Icahn to battle Yahoo to accept Microsoft bid [ID:nN15327298]
> Investors laud Icahn's Yahoo move, promise support [ID:nN15308938]
> Yahoo, Google talks have not cooled -source [ID:nN15374057]
> Paulson hedge fund backs Icahn's Yahoo slate [ID:nN15329305]
> Paulson hedge fund buys 50 mln Yahoo shares [ID:nN15279457]
> Icahn to run board slate for Yahoo - sources [ID:nN14536842]
OPINION
> Yahoo board brought this on themselves: Eric Jackson [ID:nN15278966]
BACKGROUND
> Microsoft walks away from Yahoo bid [ID:nN04337053]
> Timeline of Microsoft attempt to buy Yahoo [ID:nN04336460]
> Yahoo factbox [ID:nN04336875]
> Microsoft factbox [ID:nN04326315]
...............................................................
For latest top breaking news across all markets [NEWS]
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TOP NEWS SUMMARIES ON OTHER SUBJECTS
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Keywords: YAHOO/
NEW YORK, May 15 (Reuters) - Paulson & Co., the $30 billion hedge fund that recently built up a stake of 50 million shares of Yahoo Inc <YHOO.O>, said it intends to support a dissident board slate put forth on Thursday by investor Carl Icahn.
But Paulson, which is managed by merger arbitrage specialist John Paulson, said it hopes a proxy fight won't be necessary to get Yahoo and Microsoft Corp <MSFT.O> back to the bargaining table.
"We were disappointed that Yahoo failed to reach an agreement with Microsoft," said Paulson in a statement. "We continue to believe that a combination between Yahoo and Microsoft would form a dynamic company and a stronger competitor to Google <GOOG.O>.
"We intend to support the Icahn slate but sincerely hope that Yahoo will negotiate an agreement with Microsoft, thereby making a proxy fight unnecessary."
Reuters earlier reported, citing sources, that Paulson had built up the Yahoo stake of about 3.4 percent of the company. The hedge fund has since disclosed the holdings in a regulatory filing. (Reporting by Dane Hamilton; Editing by Brian Moss) ((dane.hamilton@thomsonreuters.com; +1 646 223 6161) Keywords: PAULSON YAHOO/
By Natalie Harrison
LONDON, May 15 (Reuters) - The cost of insuring retailer DSG International's debt against default rose on Thursday on disappointment over its turnaround plans, while broader credit spreads edged tighter in thin newsflow.
Five-year credit default swaps on DSGi <DSGI.L> widened by 5 basis points to 335 basis points, a trader said, and was the main standout in the retail sector which was broadly tighter in line with with the rest of the market.
DSGi shares also fell more than 10 percent as analysts warned that efforts by the company -- Europe's biggest specialist electricals retailer -- to cut costs and lower its dividend would not be enough to bolster the group's fortunes [ID:nL1575275].
DSG is currently rated Baa3 by Moody's Investors Service and BBB- by Fitch Ratings, both the lowest notch of investment grade ratings.
"There was no silver bullet in the review, with a turnaround likely to take some time," said Rob Orman, a credit analyst at RBS.
"I think there is a strong chance that at least one agency will cut them to junk in the next couple of weeks."
The cost of insuring Tesco debt against default was resilient however, despite a report from Moody's which said it may cut the UK supermarket's group A1 rating. The rating action cited concerns about Tesco's "weaker than expected credit metrics" and its planned acquisition of 36 discount stores from South Korea's E-Land, announced on Wednesday, Moody's said.
Tesco five-year CDS were 2 basis points tighter at 28 basis points, the trader said.
INFLATION WORRIES
In the wider credit market, the Markit iTraxx Crossover index <ITCRS5EA=GFI>, made up of 50 mostly "junk"-rated credits, was at 419.5 basis points by 1512 GMT, according to data from Markit, 8.5 basis points tighter versus late on Wednesday.
The investment-grade Markit iTraxx Europe index <ITRAC5EA=GFI> was at 69.5 basis points, 2.5 basis points tighter.
Geraud Charpin, a credit strategist at UBS, said there was little news driving credit derivative indexes tighter.
"If nothing much is happening, we tend to grind tighter in credit. We're still seeing a trickle of short covering and there is no big negative news, so there is no momentum for people to reset shorts," Charpin said.
U.S. data on Thursday showed softer-than-expected U.S. industrial output for April, which followed a weak manufacturing report from the New York Federal Reserve. Jobless claims also rose slightly more than expected in the latest week.
In Europe, the economic position is still somewhat brighter, however, as strong business investment helped drive German growth. But there are clouds on the horizon, notably weak consumer demand as soaring commodity prices push up the cost of fuel, food and other essentials.
Data earlier this week also showed a shock jump in UK inflation. The Bank of England revised up its inflation forecasts, suggesting there was little scope for further rate cuts, despite predictions of sharply slowing growth or even a recession.
"The inflationary pressures we are seeing make it harder for both the U.S. and Europe to fight against slumping growth. That fear is delaying the economic recovery so it should be seen as a negative," said Charpin.
(Reporting by Natalie Harrison; Editing by Andrew Callus)
((natalie.harrison@reuters.com; +44 207 542 2687; Reuters Messaging: natalie.harrison.reuters.com@reuters.net))
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(Recasts, adds details)
May 15 (Reuters) - Payday lender Cash America International Inc <CSH.N> said it expects to close its Ohio lending operations following the adoption of legislation that significantly caps interest on loans it makes.
The state legislature passed a bill effectively capping the interest rate on payday loans at 28 percent interest. Such loans, which tide over borrowers for short periods, carry effective annual interest rates that can top 300 percent.
Ohio's senate overwhelmingly adopted limits on payday rates on Wednesday, following similar action by the state's house of representatives
"It is indeed a sad day when state legislators decide to end a small loan alternative that has proven to be widely accepted by customers and supported by independent academic studies, " said Daniel Feehan, Cash America's chief executive.
The company said it expects Gov. Ted Strickland to sign the bill into law.
Cash America said it expects to close its 139 stores in the state, saying the new law eliminates the viability of offering the payday product.
It also cut its 2008 profit per share forecast to a range of $2.85 to $3.00 from its prior view of $3.00 to $3.15.
Cash America had raised its full-year outlook in April after reporting quarterly earnings that beat analysts' forecasts.
In a separate release, Dollar Financial Corp <DLLR.O> said it was evaluating its operations in Ohio, but said the law, if adopted, might have minimal impact on its business.
Cash America shares fell 4.9 percent to $35 in trading before the bell, after closing at $36.80 on Wednesday on the New York Stock Exchange.
(Reporting by Dinesh Nair; Editing by Anil D'Silva) ((dinesh.nair@reuters.com ; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: dinesh.nair.reuters.com@reuters.net))
Keywords: CASHAMERICA/PAYDAYLOANS
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