Company News: Yahoo shareholders need some convincing

Yahoo Inc. thinks it’s back on the right track now that co-founder Jerry Yang has replaced Terry Semel as chief executive, but analysts and investors already are wondering whether the shake-up is just a prelude to more radical measures, including a possible sale or breakup of the troubled Internet icon.

While Yang promised to rejuvenate Yahoo, Wall Street worried that the Sunnyvale-based company’s new boss might too much like the old boss.

Yahoo shares fell 49 cents, or 1.7 percent, to finish Tuesday at $27.63, reversing the positive sentiments initially expressed after the management change was announced late Monday.

“There was some knee-jerk excitement when people first heard the news, but now they are starting to question whether this was change just for change’s sake,” said Standard & Poor’s equity analyst Scott Kessler. “Is this really going to lead to a fundamental change in the way Yahoo sees things and does things?”

“Cadbury Schweppes PLC said Tuesday it plans to close 15 percent of its candy factories by 2011, cutting about 7,500 jobs, and will likely sell the U.S. unit that makes 7-Up, Dr Pepper and Snapple soft drinks.

The company had announced in March that it planned to separate its drinks and candy businesses — under pressure from investors led by U.S. billionaire Nelson Peltz — but had not indicated whether it would sell the beverage business or spin it off to shareholders.

Cadbury, which employs about 50,000 people in its candy and gum business, has 35 confectionery sites across Europe, the Middle East and Asia, and 59 other bottling and manufacturing sites worldwide.

“Blackstone Group LP, manager of the world’s second-largest buyout fund, moved up its much-hyped $4.75 billion initial public offering to this week amid growing scrutiny of the firm on Capitol Hill and in the media.

The New York-based buyout shop, which controls a portfolio of companies from Madame Tussauds wax museums to real estate goliath Equity Office Properties Trust, could join the ranks of the New York Stock Exchange by Friday morning. The landmark deal, originally scheduled for sometime next week, will likely go down as the fourth-biggest IPO in U.S. history.

The unexpected move to speed up the offering comes amid speculation that Chief Executive Stephen Schwarzman might be having second thoughts. A spokesman for Blackstone would not comment, citing the quiet period for initial public offerings.