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Yahoo! Inc. Message Board

  • mrjojangles2 mrjojangles2 Feb 10, 2012 2:33 AM Flag

    Bloomberg: Softbank up big on Alibaba news

    Softbank surged 3.7 percent and topped the turnover list after sources said Chinese e-commerce company Alibaba Group plans to take private its Hong Kong-listed unit Alibaba.com, in which the Japanese telecom firm has an indirect stake.

    "The stock (Softbank) is receiving some uplift from the Chinese Internet rerating story," a trader at a foreign bank said.

    Softbank's trading volume was more than double its average daily 90-day volume.

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    • If you think about this for a moment you'd realize that it is Alibaba group buying back Alibaba.com.

      That means Alibaba Group will have to pay more than the going value for Alibaba.com to get the deal done, so it is actually not good for Alibaba Group shareholders.

      In almost all takeovers the acquiring companies stock value or intrinsic value goes down until earnings increase from synergies.

      Once the amateurs get done buying the pros will start selling.

    • A similar move in YHOO would put the stock around $16.60...exactly the price it tried unsuccessfully to break through 3 times since Bartz was let go.

      Is this time different, or just another sell the rumor at the opening bell trade?

 
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