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| Yahoo Japan dips on reports of asset swap talks failure | Yahoo Japan dips on reports of asset swap talks failure |
| (2 days later) | |
| Shares of Yahoo Japan fell 5% on the Tokyo Stock Exchange on reports that talks regarding the swap of Yahoo's Asian assets had hit a stalemate. | Shares of Yahoo Japan fell 5% on the Tokyo Stock Exchange on reports that talks regarding the swap of Yahoo's Asian assets had hit a stalemate. |
| Yahoo owns a 43% stake in China's Alibaba group, which it acquired in 2005 for $1bn (£636m), and a part of Yahoo Japan. | Yahoo owns a 43% stake in China's Alibaba group, which it acquired in 2005 for $1bn (£636m), and a part of Yahoo Japan. |
| It had been negotiating a complex swap-deal that was expected to save it billions of dollars in taxes. | It had been negotiating a complex swap-deal that was expected to save it billions of dollars in taxes. |
| However, various reports indicated that no agreement had been reached. | However, various reports indicated that no agreement had been reached. |
| "I think the deal is either dead or it's going to take a lot longer to complete, which means we don't have a near-term catalyst; hence the selloff," said Brett Harris, an analyst with Gabelli & Co. | "I think the deal is either dead or it's going to take a lot longer to complete, which means we don't have a near-term catalyst; hence the selloff," said Brett Harris, an analyst with Gabelli & Co. |
| 'Another year of turmoil' | 'Another year of turmoil' |
| The stalemate in talks has come as a huge surprise. | The stalemate in talks has come as a huge surprise. |
| Analysts and industry experts had expected the deal to be formalised, not least because trading in Alibaba's shares at the Hong Kong Stock Exchange has been suspended since 9 February. | Analysts and industry experts had expected the deal to be formalised, not least because trading in Alibaba's shares at the Hong Kong Stock Exchange has been suspended since 9 February. |
| The reported failure of the talks is a big blow for Yahoo, which has been seeking to restructure its operations in a bid to boost its flagging fortunes. | |
| The swap-deal, worth almost $17bn according to some estimates, was not only expected to save taxes, but also provide Yahoo with billions of dollars in cash. | The swap-deal, worth almost $17bn according to some estimates, was not only expected to save taxes, but also provide Yahoo with billions of dollars in cash. |
| Analysts said unless an agreement is reached soon, Yahoo may see its problems escalate further. | Analysts said unless an agreement is reached soon, Yahoo may see its problems escalate further. |
| "The honeymoon is already over,'' said Colin Gillis an analyst with BGC Financial. "Yahoo is probably looking at another year of turmoil.'' | "The honeymoon is already over,'' said Colin Gillis an analyst with BGC Financial. "Yahoo is probably looking at another year of turmoil.'' |
| More trouble | More trouble |
| To make matters more complicated, Daniel Loeb, of hedge fund ThirdPoint, which owns more than 5% of Yahoo, launched a campaign to install his own directors on the firm's board. | To make matters more complicated, Daniel Loeb, of hedge fund ThirdPoint, which owns more than 5% of Yahoo, launched a campaign to install his own directors on the firm's board. |
| "Installing the hand-picked choices of the current board does nothing to allay investor fears that Yahoo is poised to repeat the errors of its past,'' Mr Loeb wrote in a filing with the Securities and Exchange Commission. | "Installing the hand-picked choices of the current board does nothing to allay investor fears that Yahoo is poised to repeat the errors of its past,'' Mr Loeb wrote in a filing with the Securities and Exchange Commission. |
| Mr Loeb's move comes just days after Yahoo announced changes to the board after Chairman Roy Bostock and three board members quit. | Mr Loeb's move comes just days after Yahoo announced changes to the board after Chairman Roy Bostock and three board members quit. |
| Their exit followed that of Jerry Yang, Yahoo's co-founder, who resigned from its board last month. | Their exit followed that of Jerry Yang, Yahoo's co-founder, who resigned from its board last month. |
| Yahoo said it had sought suggestions for new directors from several shareholders. | Yahoo said it had sought suggestions for new directors from several shareholders. |
| "We have received constructive suggestions from several of our major shareholders and, therefore, it is especially disappointing that Mr. Loeb has chosen a potentially disruptive path, just as the company is moving forward under new leadership to aggressively increase the value of Yahoo,'' the firm said in a statement. | "We have received constructive suggestions from several of our major shareholders and, therefore, it is especially disappointing that Mr. Loeb has chosen a potentially disruptive path, just as the company is moving forward under new leadership to aggressively increase the value of Yahoo,'' the firm said in a statement. |