... while China’s Alibaba plans to buy back its 40 per cent stake

China’s Alibaba Group has held talks with state-owned investment company Temasek over buying back the 40 per cent stake in itself held by Yahoo.

Alibaba – a huge success story in China – could even bid for the whole of Yahoo, allowing it to push into the US.

Jack Ma, the chief executive of Alibaba, said last month he would be “very interested” in such a deal, although Temasek is understood to be less keen. Singapore’s Temasek may help fund an offer in return for a bigger share of privately-owned Alibaba Group.

The relationship between Alibaba and Yahoo has become increasingly strained, with the US firm claiming it was kept in the dark over the spinning-off of Alipay, the company’s online payment service.