Have Alibaba Group and Yahoo Inc. talks stalled?
Hong Kong based Alibaba Group's (HKG:1688) negotiations with Yahoo Inc (NASDAQ:YHOO) are understood to have hit a wall, throwing their plans for a $17 billion tax-free asset swap into question, according to media sources.
Alibaba shares have been suspended since last Thursday.
If the companies can't agree deal terms, sources speculated that Alibaba might team up with private equity investors in the United States and seek to acquire Yahoo outright.
This would enable Alibaba to regain its shares from Yahoo, while private equity could take control of Yahoo's U.S.-based Internet business. This was speculation. Other sources indicated the deal could be dead in its current form, but the companies might head back to the negotiating table.
Alibaba has received fully underwritten commitments from six banks for a $3 billion loan it would use to buy back part of the Yahoo-held stake.
The loan could be put in place within days, with Alibaba expected then to make an announcement to the Hong Kong stock exchange.
Other Market analysis articles
- Beijing's struggle to keep arable land away from the developers
- The iron-ore deposit that grows with every headline
- The end of scientific development, return to property speculation
- CNOOC looks to unconventional oil and gas to increase production
- Hang Seng Index climbs 1.3%, strong start to year
- China's Shanghai Index kicks on signs of easier monetary policy
- Guangdong inks 10% GDP growth
- Hang Seng Index hits three months high
- China stock index broaches 2,300 level
- China Guangdong Nuclear Power Group closer to offer for uranium company
- China's steel output up 8.9% in 2011
- Shanghai's GDP grows 8.2% in 2011, strong retail sales
- Guangxi is now China's largest coal importer
- Hong Kong stocks climb 1.6%, highest close since Sept. 1
- Hang Seng Index unchanged in light Fri trading