Alibaba.com shares up after parent's Alipay deal with SoftBank, Yahoo

HONG KONG/SHANGHAI Mon Aug 1, 2011 8:09am IST

Two men chat beside a logo of Alibaba (China) Technology Co. Ltd at its headquarters on the outskirts of Hangzhou, Zhejiang province May 17, 2010. REUTERS/Steven Shi/Files

Two men chat beside a logo of Alibaba (China) Technology Co. Ltd at its headquarters on the outskirts of Hangzhou, Zhejiang province May 17, 2010.

Credit: Reuters/Steven Shi/Files

Related Topics

HONG KONG/SHANGHAI (Reuters) - Shares of Alibaba.com Ltd rose to a two-week high on Monday after its parent, Chinese e-commerce firm Alibaba Group, forged a complex deal with SoftBank Corp and Yahoo Inc over mobile payments unit Alipay.

Alibaba.com, the only listed unit of Alibaba Group, rose as much as 7.37 percent to a two-week high of HK$11.66, outperforming the Hang Seng Index's 1.39 percent gain.

"I don't think the rise has anything to do with the listed company, it has more to do with the parent company managing to settle the Alipay issue with its two major shareholders," said Elinor Leung, a Hong Kong-based CLSA analyst. "Net-net it is good for the entire Alibaba Group development so you don't have the (risk) overhang anymore."

Alibaba, Yahoo and Softbank on Friday announced a deal that would see Alibaba receive up to $6 billion in the event that Alipay is listed or sold.

The deal capped months of intense negotiations sparked by the transfer of Alipay to a company wholly owned by Alibaba Group founder Jack Ma.

Alibaba Group said the transfer was necessary for Alipay to comply with domestic regulations in order acquire a license to continue operating as an e-payment service. Yahoo said in May that it was not aware of the transfer, while Alibaba countered that it had kept Yahoo and Softbank board members in the loop.

Alibaba Group, China's largest e-commerce company, is 40 percent owned by Yahoo and 30 percent owned by Softbank Corp.

(Editing by Chris Lewis)

FILED UNDER:
Photo

After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.

Republic Day

Reuters Showcase

RK Laxman Dead

RK Laxman Dead

'Common Man' cartoonist RK Laxman dead at 93  Full Article 

Banking Revolution

Banking Revolution

India turns to corner shops, mobile phones for banking revolution.  Full Article 

Nuclear Group

Nuclear Group

China urges India to take steps to satisfy standards of NSG  Full Article 

Gold Market

Gold Market

Chinese gold demand holds up ahead of holiday, Indian buying weak  Full Article 

India-U.S. Relations

India-U.S. Relations

Column - U.S. and India should join to balance China's rise  Full Article 

Padma Bhushan

Padma Bhushan

India honours Bill Gates with civilian award  Full Article 

Fashionable Modi

Fashionable Modi

When Modi met Obama, his name was all over - his suit  Full Article 

New Greek PM

New Greek PM

Greek leftist Tsipras sworn in as PM to fight bailout terms  Full Article 

Australian Open

Australian Open

Venus fireworks illuminate Australia Day  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage