Activist investor Starboard urges Yahoo to combine with AOL

26/09/2014 - 17:45

(Reuters) - Activist investor Starboard Value LP said Yahoo Inc should consider a strategic combination with AOL Inc to save more than $1 billion in costs.

Starboard also urged Yahoo to cut expenses and look for ways to generate value for shareholders from its stakes in Alibaba Group Holding Ltd and Yahoo Japan Corp <4689.T>.

Starboard said it had acquired a significant stake in Yahoo and delivered a letter to Yahoo's board with its suggestions.

(Reporting by Anya George Tharakan in Bangalore; Editing by Sriraj Kalluvila)