By Benjamin Pimentel, MarketWatch
SAN FRANCISCO (MarketWatch) -- Shares of Yahoo Inc. climbed
Monday after Alibaba, the Chinese tech powerhouse in which the
U.S.-based Web portal owns a huge stake, said it has begun the
process for a much-awaited initial public offering.
Yahoo (YHOO), which owns a 24% stake in Alibaba, rose 4% to
close at $39.11. On Sunday, Alibaba said in a statement that the
company "has decided to commence the process of an initial public
offering in the United States."
"This will make us a more global company and enhance the
company's transparency, as well as allow the company to continue to
pursue our long-term vision and ideals," the statement
continued.
Alibaba added that "should circumstances permit in the future,
we will be constructive toward extending our public status in the
China capital market in order to share our growth with the people
of China."
"We respect the viewpoints and policies of Hong Kong and will
continue to pay close attention to and support the process of
innovation and development of Hong Kong," Alibaba's statement
said.
The reference to Hong Kong follows reports that Alibaba had a
disagreement with Hong Kong's stock market related to the way the
company wanted to structure its IPO.
In a blog post in September 2013, Alibaba co-founder and
executive vice chairman Joe Tsai said the company "proposed a
governance structure that would enable Alibaba's partners -- key
people who manage our businesses -- to set the company's strategic
course without being influenced by the fluctuating attitudes of the
capital markets so as to protect the long-term interests of our
customers, company and all shareholders."
"We understand Hong Kong may not want to change its tradition
for one company, but we firmly believe that Hong Kong must consider
what is needed in order to adapt to future trends and changes,"
Tsai added.
Yahoo's gains set the pace for a tech sector rally as the Nasdaq
Composite Index (RIXF) added 35 points, or nearly 1%, to close at
4,280. The Morgan Stanley High Tech 35 Index (MSH) and the
Philadelphia Semiconductor Index (SOX) were each up more than
1%.
Google Inc (GOOG) rose 1.7% to close at $1,192.10 while
Hewlett-Packard (HPQ) climbed 1.4% to close at $29.48 and Apple
Inc. (AAPL) gained 0.4% to close at $526.74.
On the downside, LinkedIn (LNKD) slipped 2.5% to close at
$191.81 , while Juniper Networks (JNPR) dropped 1% to close at
$25.36.
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