NEW YORK (
has hired U.S. government lobbying firm
The Duberstein Group
, signaling the Chinese ecommerce giant's interest in buying back
(YHOO - Get Report)
40% stake in the company or forcing a takeover bid, according to
If Alibaba is unsuccessful in buying back its stake from Yahoo!, a takeover of the Web pioneer may be an alternative scenario as the company completes a strategic review.
Previous reports have included takeover interest by private equity investors, in addition to strategic involvement by
and Asian partners Alibaba and
, among others. By hiring a Washington lobbyist, Alibaba may be looking to quell political and security concerns of a Chinese takeover of Yahoo,
Alibaba may need lobbying help because an offshore bid for an online U.S. property may hit political roadblocks because of consumer data and national security concerns.
Sino-American takeovers do not have a great record of success. Chinese state-owned oil giant
failed in an $18.4 billion bid for Los Angeles -based
in 2005 because of foreign security concerns. Recently,
scuttled a deal for Chinese automakers to buy Swedish automaker's
to avert a liquidation on intellectual property concerns.
Shares of Yahoo! were higher after the report, up over 1% to $15.96 in pre-market trading. The Sunnyvale, Ca. -based company's shares are off over 5% year-to-date.
-- Written by Antoine Gara in New York
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