Yahoo shares jump on talk of new Microsoft bid
Neither side was commenting on the speculation, which drove Yahoo's stock price up more than 9.5% to US$15.84 in closing trade. Microsoft shares traded 2.3% higher at US$25.93.
"There are rumors that say the Microsoft has made an offer or is in the process of preparing an offer" for Yahoo, said a market source, insisting on anonymity.
"Don't forget that Microsoft has already made an offer, so it is logical, but it is still a rumor.
"What is not a rumor is that the head of (Chinese search firm) Alibaba has said he is interested in the company and that Yahoo is prepared to open its books for interested parties," the source said.
Yahoo had received proposals
At the end of September, Yahoo said it had received proposals from a number of parties on possible options for the company. That came after the company ousted, chief executive Carol Bartz on September 6 in a rift over its direction. Bartz in turn blasted the board for its own shortcomings, and since then much speculation has emerged on how Yahoo will move ahead.
Once seen as the Internet's leading light, Yahoo has struggled to build a strongly profitable, growing business out of its huge web presence and audience.
Microsoft tried to buy the company for US$44.6 billion in February 2008, or a per-share price of US$31. Yahoo said the bid undervalued the company, and reportedly turned down a higher offer of US$32-33 a share.
At the price Wednesday the company was valued around $20 billion.
Source: I-Net Bridge
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