Yahoo to sell back half its stake in Alibaba
LOS ANGELES (MarketWatch) -- Yahoo Inc. said Sunday it has struck a deal with Alibaba Group Holding Ltd. to sell up to half of its current holdings in the Chinese Internet major, with plans to eventually divest the rest. Under the deal, Alibaba would repurchase up to half of Yahoo's stake -- about 20% of the company -- with the minimum price allowed in the agreement to net Yahoo $7.1 billion, consisting of cash and $800 million in new Alibaba prefered shares. Yahoo would then be able to sell another 10% of the company if and when Alibaba lists publicly.
Hong Kong stocks slip; some China firms advance
HONG KONG (MarketWatch) -- Hong Kong shares declined in choppy trading amid persistent worries about Europe, although many mainland Chinese stocks climbed following Premier Wen Jiabao's pledge to promote pro-growth policies in response to a slowing economy. The benchmark Hang Seng Index , which has dropped in 11 of the past 12 sessions, was down 0.5% at 18,852.08. The Hang Seng China Enterprises Index fell 0.3% to 18,851.17, while the Shanghai Composite added 0.1% at 2,347.28. Gains were restricted, however, amid lingering worries over the future of Greece in the euro-zone.
Australia stocks climb, with resource shares up
LOS ANGELES (MarketWatch) -- Australian stocks revved back to life in early Monday moves, with the benchmark S&P/ASX 200 adding 0.9% to 4,082.50 after a 2.7% drop Friday. China-sensitive shares appeared to get a boost from weekend comments by Chinese Premier Wen Jiabao, who promised a commitment to timely pro-growth policies. Mining majors BHP Billiton Ltd. and Rio Tinto Ltd. rose 2.2% and 1.1%, respectively, while BlueScope Steel Ltd. jumped 3%. Gold producer Newcrest Mining Ltd. climbed 1.6%, tracking a rebound in gold prices.
Japan stocks rebound modestly; blue chips strong
LOS ANGELES (MarketWatch) -- Japanese stocks rose in a choppy Monday open, as select shares rebounded off of heavy losses in the previous week, and defensive retail-stock plays outperformed. Despite negative leads from the U.S. and Europe Friday, Japan's globally traded blue chips outpaced the market, with the Nikkei Stock Average rising 0.4% to 8,645.04, beating a 0.2% gain for the broader Topix. Amid a modest rebound in the euro to above 101 yen, companies with strong European exposure were among the gainers, including a 0.6% rise for Sony Corp. and a 1% advance for Mazda Motor Corp. .
Yahoo near deal to sell half of Alibaba stake: WSJ
LOS ANGELES (MarketWatch) -- Yahoo Inc. and Alibaba Group Holding Ltd. are on the verge of a deal in which Yahoo would sell half of its 40% stake in Alibaba for $7.1 billion, The Wall Street Journal reported late Sunday, citing unidentified sources familiar with the deal. The deal would net Yahoo about $4 billion after taxes, including a small amount of prefered shares in the Chinese Internet major, the report said. Under the reported details of the agreement, Alibaba would retain the right to buy an additional 10% of Yahoo's holdings if Alibaba lists publicly before December 2015.
Nasdaq chief apologizes over Facebook IPO glitches
LOS ANGELES (MarketWatch) -- Nasdaq OMX Group Inc. Chief Executive Officer Robert Greifeld said Sunday that the U.S. exchange was "humbly embarrassed" over glitches that interfered with Facebook Inc.'s initial public offering Friday, according to several reports. "This was not our finest hour," although the overall offering was "successful," Greifeld was quoted as saying in The Wall Street Journal, adding that Nasdaq's board met a day after the IPO to discuss the problems.
Lockerbie bomber Megrahi dies of cancer in Libya
SAN FRANCISCO (MarketWatch) -- Convicted Lockerbie bomber Abdel Baset al-Megrahi died Sunday in Libya from prostate cancer, according to media reports. Megrahi, 60, was the only person convicted in the bombing of Pan Am Flight 103 over Lockerbie, Scotland, on Dec. 21, 1988. The bombing killed all 259 passengers and crew on the flight, as well as 11 people on the ground. Controversy arose in 2009 when Megrahi was released from a Scottish prison for medical reasons and received a hero's welcome upon his return to Libya.
I'll Have Another wins Preakness Stakes
CHICAGO (MarketWatch) -- Kentucky Derby winner I'll Have Another won the Preakness Stakes Saturday at Pimlico Race Course in Maryland, giving him a shot to become the first Triple Crown winner in 34 years. As in the Derby two weeks ago, I'll Have Another ran down front-running Bodemeister to prevail by a head at the wire. Creative Cause finished third. I'll Have Another was the second betting choice in the race at 3-1; Bodemeister went off at 8-5. There has not been a Triple Crown winner since Affirmed in 1978.
Spain may again revise 2011 deficit upward: AP
LOS ANGELES (MarketWatch) -- Spain says it may have to again revise its 2011 budget deficit upward, the Associated Press reported late Friday. Spending by four regional governments within Spain -- Madrid, Valencia, Andalusia and Castilla-Leon -- exceeded forecasts, driving up the national deficit for a second time. AP said the government now projects a possible deficit that is equal to 8.9% of GDP, nearly three times the recommended maximum for nations using the euro. The government said it still expects to hit a 5.3% budget deficit this year.
Alabama Trust is year's 24th U.S. bank failure
SAN FRANCISCO (MarketWatch) -- Federal regulators shut the Alabama Trust Bank in Sylacauga, Ala., the Federal Deposit Insurance Corp. said late Friday. Closure of the single-branch bank marks the 24th failure of a U.S. bank in 2012. The FDIC said Southern States Bank has agreed to buy the bank's $51.6 million in assets and $45.1 million in deposits. The FDIC estimates the cost to its deposit-insurance fund at $8.9 million.
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