Thursday morning headlines

Icahn battling Yahoo: The billionaire investor says that the board acted irrationally in rejecting the Microsoft offer, so he's putting up a slate of 10 new directors. Microsoft has given no indication that it would be willing to return to the bargaining table, and some analysts question Icahn's strategy. Here's the NYT story and below is a snippet from Icahn's letter to the Yahoo honchos:

I am perplexed by the board’s actions. It is irresponsible to hide behind management’s more than overly optimistic financial forecasts. It is unconscionable that you have not allowed your shareholders to choose to accept an offer that represented a 72% premium over Yahoo’s closing price of $19.18 on the day before the initial Microsoft offer. I and many of your shareholders strongly believe that a combination between Yahoo and Microsoft would form a dynamic company and more importantly would be a force strong enough to compete with Google on the Internet.

CBS to buy CNET: Purchase price is $1.8-billion, and it comes as the technology news Web site has been trying to fend off a group of activist investors seeking control of the board. The purchase also runs counter to CEO Les Moonves' assurances that the company wouldn't go after expensive online properties. Oh well. From the press release (via DealBook):

“There are very few opportunities to acquire a profitable, growing, well-managed Internet company like CNET Networks,” he said in a press release Thursday. “Together, CBS and CNET Networks will have significant additional exposure to the fastest-growing advertising sector and can accelerate our growth through a number of new content, promotion and advertising initiatives.”

Countrywide suit cleared: U.S. District Judge Mariana R. Pfaelzer in Los Angeles sided with several public pension funds in ruling that a shareholder lawsuit against the mortgage lender should go to trial. Countrywide had argued that the case should be dismissed. Pfaelzer noted that several witnesses gave persuasive accounts in alleging that the company rewarded employees for boosting loan volume rather than for generating good loans. (AP)

Samueli steps down: The chairman of the Irvine chip maker will also take a leave of absence as the company's chief technology officer. As reported yesterday, the SEC accuses co-founders Henry Samueli and Henry T. Nicholas III of fraudulently backdating stock options.(LAT)

Soundstages in Moorpark: They're part of a $125-million independent production facility being planned. The 37-acre Commonwealth Studios would have 14 soundstages (they're in short supply throughout Socal), plus offices, a commissary and other support services. Developers will start building within a year if the city approves. (LAT)

Ponzi scheme alleged: The FBI arrested the president of Accelerated Funding Group in Pasadena after a grand jury indicted her on fraud charges. Jeanetta Standefor is accused of targeting African American investors who allegedly were told that they were buying "virtually risk-free" securities that would generate returns of as much as 50 percent within 45 days. The money raised supposedly was being invested to help save homeowners from foreclosure, the complaint says, but none of the funds were actually used that way. (LAT)

Patient-dumping ordinance: The L.A. City Council gave preliminary approval to a measure that would fine hospitals up to $25,000 for dropping off homeless patients on the streets. The hospital industry was lobbying against the measure. (LAT)

Warren Cowan dies: He represented most every major star during the past 50 years: Paul Newman, Elizabeth Taylor, Danny Kaye, Kirk Douglas, Frank Sinatra, Tony Curtis... well, it's a very long list. In 1946, he joined up with his mentor Henry Rogers to form a firm that pretty much pioneered show business publicity. Cowan was 87. Here's the Variety obit and below is Army Archerd's rememberance.

Farewell, ole flack. My best friend, Warren Cowan, left us this evening just after I said goodbye to him at Cedars Sinai hospital with his dear wife, Barbara. Warren and I started our friendship at Townsend Harris high school, at 23rd St. and Lexington Ave., when we were all of 12 years old. The friendship in the biz was unmatched by anyone else on either side of the press publicity fence. His honesty and perseverance helped make the profession an honored one. He gave birth to the multitude of publicity firms, which sprung from his offices. He leaves a legacy for his profession and for the business, and I will miss his cheery voice and his good stories.