Yahoo! Inc. is working with tax officials to complete the planned spinoff of its stake in Alibaba Group Holding Ltd. by the end of the fourth quarter, said Ron Bell, general counsel for the company.
“We continue to work with them and be responsive to their questions and inquiries,” Bell said during a shareholders meeting in Santa Clara, California, Wednesday.
Chief Executive Officer Marissa Mayer also reassured investors last week that the spinoff is proceeding as planned, helping to lift shares in the Web company. She was responding to a question at the Bloomberg Technology Conference about whether any potential regulatory changes would affect the tax-free plan to distribute shares in Alibaba to Yahoo shareholders. The company has been reassured that any new tax steps weren’t specific to Yahoo, she said on June 16.
The Alibaba stake was valued at almost $40 billion when the spinoff was announced.
Yahoo is working internally on “a number of different tracks” to get the deal done by the end of the fourth quarter, Bell said.
Yahoo shares rose less than 1 percent to $40.94 at the close in New York, leaving them down 19 percent this year.