Moscow. December 9. American Yahoo! Inc. abandoned plans of allocation in the independent company of its stake in Alibaba Group Holding, is estimated at $32 billion, writes the Financial Times citing informed sources.
According to sources, the decision was made under pressure from shareholders, who fear that such a move would require Yahoo! large tax payments.
At the beginning of the current year Board of Directors Yahoo! announced its intention to allocate a share in Alibaba into an independent company, hoping that such transaction will not be taxed.
However, the Internal revenue service of the United States Internal Revenue Service (IRS) refused in advance to make a restraining order that will deal from Yahoo! the taxes, the amount of which may be billions of dollars.
Concerns that the company’s shares, which was to receive a share Yahoo in Alibaba – Aabaco Holdings Inc. – will trade at a large discount to the value of the securities of Alibaba because of the risk of large tax payments were one of the most important reasons for rejecting the deal, writes the FT.
The investment Fund, Starboard Value, a shareholder of Yahoo! urged the company to abandon the allocation of a share in Alibaba and in return to sell the business in the field of Internet search.
According to sources FT, refusing the allocation of a share in Alibaba, Yahoo! considering the separation of its core business together with a share in Yahoo Japan. Tax risks associated with the allocation of these operations to a separate company, are much lower.
A number of private equity funds, as well as media company IAC, interested in possible sale of operations Yahoo! in the field of Internet search, the sources noted.
The interest to the company said Verizon, which, however, noted that it was premature to talk about a possible deal.
Shares Of Yahoo! prices rose after news of the refusal from the allocation of shares in Alibaba, for more deals on Tuesday, their value increased by more than 2%.