Yahoo jumps as takeover looks likely

PRIVATE equity firms Blackstone Group and Bain Capital are looking to make a bid for full ownership of stagnating internet giant Yahoo, after days of speculation surrounding the company’s buyout.

The deal, made alongside Chinese e-commerce group Alibaba and Japanese telecoms corporation Softbank, is expected to see Yahoo sell for as much as $20 a share, reaching a total value of $25bn (£15.9bn) from 1.24bn shares outstanding.

Yahoo’s stock rose as much as six per cent yesterday as the potential bid was announced.

The offer would involve Blackstone and Bain taking over the US operations of Yahoo, while Softbank would run Yahoo Japan.

Alibaba would buy back the 40 per cent stake of its shares that Yahoo currently owns.

Offers for a minority stake in Yahoo at $16-18 per share came in earlier this week but Yahoo delayed a decision in hope of a higher offer emerging.