Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

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Jeff Smith Bullish on Yahoo and MeadWestvaco

Jeff Smith

It is no surprise that Jeff Smith, the manager of activist fund Starboard Value, likes MeadWestvaco Corp. (NYSE:MWV) and Yahoo! Inc. (NASDAQ:YHOO), so it is clear why he chose these two companies to discuss during his speach at the Sohn Canada conference. Starboard owns 9.35 million shares of MeadWestvaco Corp. (NYSE:MWV) and is trying to pursue the packaging company to spinoff its specialty chemical business to unlock some obscured value. Another investor in MeadWestvaco Corp. (NYSE:MWV) is Clint Carlson’s Carlson Capital, which owns 1.56 million shares as of the end of the second quarter.

In Yahoo! Inc. (NASDAQ:YHOO), Starboard has not disclosed its stake yet, which means that all eyes will be on Starboard’s next 13F filing, due to appear in the next couple of weeks. However, the investor has sent a letter to the company’s CEO Marissa Mayer recently. Starboard proposed a merger between Yahoo! Inc. (NASDAQ:YHOO) and AOL, Inc. (NYSE:AOL) and to spin off its equity investments in Alibaba Group Holding Ltd (NYSE:BABA) and Yahoo Japan to unlock shareholder value, since other shareholders are disappointed currently that Yahoo! Inc. (NASDAQ:YHOO)’s core business is suffering and Mayer is not doing anything particular regarding the huge value hidden in its multi-billion dollars-worth equity stakes.

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