Starboard seeking control of Yahoo's board amid turnaround plans: Report

The activist hedge fund is seeking to control Yahoo's seven member board before a proxy war could begin in late-March.

Ruben Sprich/Reuters/Corbis

Outspoken hedge fund Starboard will work to gain control of Yahoo's board in upcoming talks scheduled for as early as next week, according to Reuters.

The talks come before a March 26 deadline for Starboard and other shareholders to submit board of director nominees.

Yahoo is trying to avoid a proxy contest before the deadline. The New York Post reports Yahoo's current board has weighed offering Starboard two or more seats.

The hedge fund, which has publicly pushed Yahoo towards a sale of its core assets and a major turnaround plan, is seeking four board seats.

"The market has a dim view of the company's current strategy," Starboard CEO Jeff Smith wrote in a February letter to Yahoo's board and management. "Selling the Core Business now is the best outcome for Yahoo shareholders," adding Starboard will "look to make significant changes to the board if you continue to make decisions that destroy shareholder value."

Yahoo is expected to approach potential buyers as early as next week and have a short list of bidders by April. Potential suitors include Verizon and Time INC .