China fund may help Alibaba in Yahoo! bid: report

China Investment Corporation is in advanced talks to add up to $2 billion to the Alibaba Internet Group's efforts to buy back a stake from struggling Internet pioneer Yahoo!, the New York Times reported.

The newspaper cited an unnamed source on Thursday as saying that Alibaba is in discussions with several , including Singapore's Temasek, Russia's DST Global and the US Blackstone Group, on buying back the shares.

Alibaba hopes to raise a total of around $4.6 billion.

After more than a year of negotiations, Yahoo! agreed to sell its stake in Alibaba, China's top e-commerce player, for at least $7.1 billion, the companies announced Sunday.

The transaction will be carried out in stages, with the first step calling for a repurchase by Alibaba of up to one-half of Yahoo!'s stake, or approximately 20 percent of Alibaba's total shares.

Yahoo! would receive from Alibaba approximately $7.1 billion, composed of at least $6.3 billion in cash proceeds and up to $800 million in newly-issued preferred stock, the firms said.


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Citation: China fund may help Alibaba in Yahoo! bid: report (2012, May 25) retrieved 30 November 2020 from https://phys.org/news/2012-05-china-fund-alibaba-yahoo.html
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