Yahoo Inc. (NDAQ: YHOO) may have evaded one of the largest activists – Carl Icahn – but more hedge funds are coming out of the woodwork. Ivory Investment Management, which owns a 1.5% stake in the company, pushed the internet company to sell its search business to Microsoft Corporation (NDAQ: MSFT), adding to the pressure it already faces to restart talks with its rival.

The move also added to speculation that Yahoo was also intending to put itself up for sale. Recent actions by management, such as a move to lean down severance packages, had many speculating that the firm was preparing to sell itself. Investors have insisted that a sale could be a way out of this mess with Ivory insisting that the $15 billion raised could help restore its troubled finances.

Curtis Macnguyen, who manages the Ivory fund, said in a letter to the board that it was acting unreasonably in rejected Microsoft’s offer and insisted that the deal could help Yahoo improve its profits and double its slumping share price to $24, according to his calculations. In fact, if Yahoo were to retain 80% of the revenues from Microsoft’s search ads, it would boost profits by $500 million annually.

Whether or not this speculation turns out to be true remains to be seen, but Yahoo is definitely a stock worth watching given the potential gains…

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Global Med Technologies (OTC: GLOB) is trading well below its intrinsic valuation, according to at least one activist hedge fund. Victory Park Capital principal Richard Levy insisted in a letter to the board that if the equity markets do not reflect the value of the company then it is incumbent upon the board to take action to realize that value for shareholders.

As a result, Victory Park recommended one of two options:

1. Publicly auction the company for sale to a strategic or financial buyer.
2. Pursue a buyout transaction led by Victory Capital.
   

Victory Capital announced that they are prepared to purchase all of the company’s outstanding equity securities that it does not already own for $1.10 per share in cash, subject to completion of limited, confirmatory due diligence and negotiations. Moreover, they are prepared to move quickly to realize this transaction and set a deadline of December 16th for a board response.

Given that this number represents a 22% premium to the current market price for Victory Capital’s offer or even more for a competitive auction, this situation is definitely one worth watching for shareholders and investors comfortable in playing such opportunities.

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Dillard’s Inc. (NYSE: DDS) shares surged higher after an activist investor demanded to see its records. Barington Capital Management demanded to see records of everything from the firm’s plane fleet to business expense reimbursements in a Schedule 13D/A filing with the SEC. Why? According to the filing:

The purpose of this demand is to enable Barington and Clinton to investigate and communicate with the Company’s stockholders regarding matters relating to their mutual interests as stockholders, including, without limitation, the use of corporate assets, the levels and types of compensation, perquisites and benefits provided to directors and executive officers of the Company or related parties, the nature of any family, business or personal relationships between the Company’s executive officers and directors, Board oversight and certain decisions by the Board or its committees regarding the foregoing matters or otherwise affecting the Board, the management or corporate governance of the Company or other interests of stockholders.

This isn't the first time that activist shareholders have targeted Dillard's either. In March, Mitarotonda and Hall requested copies of Dillard's books and records in anticipation of a proxy fight. Luckily, Dillard's eventually reached a deal with the shareholders and added four new Class A directors to its board. What happens now remains to be seen, but shareholders are clearly bullish on the prospects.

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