May 16 Yahoo Inc said on Tuesday it
would buy back up to $3 billion shares through a tender offer to
provide liquidity to stockholders looking to sell the stock
ahead of the company's pending deal with Verizon Communications
Shares in Yahoo, which has a 15 percent stake in Chinese
e-commerce company Alibaba Group Holding Ltd, were up 2
percent at $50.81.
Yahoo said it would determine a single purchase price after
the expiry of the Dutch auction tender offer on June 13 and that
the price would not be less than $37 per share.
The company said its directors and executive officers will
not tender any shares in the buyback.
Verizon agreed to buy Yahoo's core internet properties last
year for $4.83 billion in cash. It lowered the original offer by
$350 million in February following two massive cyber attacks at
the internet company.
After the Verizon deal, Yahoo will be renamed Altaba, a
holding company whose primary assets will be its stake in
Alibaba and a 35.5 percent stake in Yahoo Japan.
(Reporting by Supantha Mukherjee in Bengaluru; Editing by Maju
Samuel and Anil D'Silva)