Alibaba Eyes $3 Billion Loan to Reclaim Yahoo Stake (Report)
The internet giant owns 40 percent of the Chinese company.
Alibaba Group Holding Ltd. aims to reclaim the 40 percent stake that Yahoo owns in the Chinese company, using a combined $3 billion loan from six different banks, the Wall Street Journal reported Thursday.
According to the Journal, Alibaba -- operator of the e-commerce website Alibaba.com as well as China's biggest online shopping sites -- was soliciting loans from the following banks: Credit Suisse Group AG, DBS Bank Ltd., Australia and New Zealand Banking Group Ltd., Deutsche Bank AG, HSBC Holdings PLC and Mizuho Financial Group.
The banks must first get inside credit approval; the loan should be a done deal by late February, the Journal said.
On Thursday, Alibaba.com from trading in Hong Kong as it prepares to clarify speculation about a transaction involving its controlling shareholder, Alibaba Group Holdings Ltd.
Yahoo, whose revenue dropped 21 percent in 2011, wants shake off its stakes in Alibaba Group and Yahoo Japan so that it can use the money to make acquisitions, among other moves. On Tuesday, the company announced four members of its board including Roy Bostock would leave the panel in late 2012.