Chinese Internet Firm Wants Voice in Microsoft/Yahoo Talks

Alibaba Group, in which Yahoo holds a 39 percent stake, wants a stronger voice in the talks between Microsoft and Yahoo to influence how shares would be transferred to any new owner. From Reuters via eweek.com :

Alibaba Group , the Chinese Internet firm, will seek a stronger voice for its management team in Microsoft ‘s talks to acquire Yahoo , Alibaba’s largest shareholder, a source said on Monday.

Based on the original agreement with Yahoo, which owns 39 percent of Alibaba, the Chinese company is in a very strong position to influence how shares would be transferred to any new owner, said the source, who is close to Alibaba.

The problem is a perception by Beijing authorities that an important Chinese firm could come under the control of Microsoft Corp, which has a reputation of using monopolistic tactics, said the source, who is familiar with a team of bankers and lawyers assembled by Alibaba to review its options.

February 18, 2008 9:18 AM
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Categories: Economy