Daniel Loeb, manager of hedge fund Third Point, which owns 5.8 percent of Yahoo, sent another scathing letter to Yahoo's board on Friday, demanding Yahoo CEO Scott Thompson be fired for inflating his academic record by noon on Monday.
Yahoo's admission of "error" in representing Thompson's background is "inadequate," Loeb said.
"Yahoo!'s initial response yesterday to Third Point's identification of material inaccuracies in both CEO Scott Thompson's and Director Patti Hart's educational record was insulting to shareholders," wrote Loeb in the letter.
Yahoo has been embroiled in an ongoing battle with Third Point for control over its board. Loeb is hoping to name a slate of four directors, including himself.
The company acknowledged on Thursday that it had overstated Thompson's educational background. In a press release, Yahoo said Thompson has only a bachelor's degree in accounting from Stonehill College and not one in computer science as well.
The board said Thursday that it will investigate what happened.
Loeb outlined several actions he would like Yahoo to take by Monday. First, he wants Yahoo to disclose the process it underwent to select Thompson as CEO, then disclose any ties between Thompson and directors on the board. He also requested more detail about how Yahoo selects its directors and he demanded the board fire Thompson for cause given his "demonstrable unsuitability" to remain CEO.
He also requested Patti Hart, a Yahoo board member, step down for a similar reason.