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Yahoo shares takes a hit after concerns over Alibaba IPO filing

Published on May 8, 2014 5:01 AM

NEW YORK (AFP) - Yahoo shares tumbled Wednesday on concerns its stake in Alibaba may be worth less than anticipated following the Chinese online giant's stock market offering.

The US Internet giant saw a 6.6 per cent drop in its shares to US$34.07 (S$42.53) at the close of trade as the market digested details in Alibaba's initial public offering documents filed on Tuesday.

Colin Gillis at BGC Partners said the IPO showed Yahoo's stake at 22.6 per cent, not the 24 per cent which had been previously estimated.

Gillis told AFP that the valuation suggested in the Alibaba filing was US$116 billion and added, "that's less than investors were thinking."

Yahoo chief executive Marissa Mayer said that the firm would maintain its plan to cut its stake by 40 per cent when Alibaba makes its market debut. -- FILE PHOTO: AFP
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