Traders Taking Yahoo Hit Are Latest Victims of Deals: Real M&A
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At a time when traders who bet on deals are constantly being thrown curve balls, more bad news: Yahoo! Inc.’s plan to make them rich may be getting derailed.
The stock plummeted as much as 12 percent near the end of Tuesday’s trading session because the U.S. Internal Revenue Service is considering a change to the rules governing some tax-free spinoffs. The speculation is that this could complicate Yahoo’s plan to exit its Alibaba Group Holding Ltd. stake, which is valued at about $26 billion.