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Yahoo announces tax-free spinoff of Alibaba stake worth US$40b

New company holding stake will be wholly owned by Yahoo shareholders

Ms Mayer says the deal "maximises value for shareholders" and avoids a potential tax bill of up to US$16 billion under a traditional sale of the stake.

New York

YAHOO is spinning off its stake in Chinese Internet giant Alibaba, splitting off the valuable holdings in a move that sidesteps taxes.

The strategy laid out on Tuesday aims to deliver more cash for shareholders than an outright sale of the US$40-billion stake, avoiding a...

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