Yahoo gains as Alibaba-led group prepares bid

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Yahoo! Inc., the Internet company exploring strategic options, rose as much as 4.8 percent on the prospect of a bid from a group led by Alibaba Group Holding Ltd.

Alibaba and Softbank Corp. (9984) are in advanced talks with Blackstone Group LP (BX) and Bain Capital LLC about making a bid for all of Yahoo, three people with knowledge of the matter said.

Yahoo climbed 4.1 percent to $16.36 at 9:54 a.m. New York time after rising as high as $16.46. A bid may value Yahoo at more than $20 a share because of tax savings tied to its stakes in Alibaba and Yahoo Japan, said two of the people, who declined to be identified because the discussions are private.

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