Former AOL Chief Explores Yahoo Bid

SAN FRANCISCO -- Yahoo's (YHOO Quote) stock surged more than 6% Tuesday on a report that AOL's former chief executive is trying to raise enough money to buy all or part of the struggling Internet company.

A story posted Tuesday on The Wall Street Journal's Web site said former AOL CEO Jonathan Miller believes he could buy Yahoo for $20 to $22 per share if he can line up the necessary financing. That would mean he would have to raise $28 billion to $30 billion.

The Journal's story cited unnamed people familiar with the matter.

A Yahoo spokeswoman declined to comment on what she labeled a "rumor." Miller didn't immediately respond to a request for comment.

Yahoo shares climbed 69 cents, or 6.4%, to $11.43 in afternoon trading.