After holding the 19.6% stake for nearly three years, Barclays intends to sell the shares through an offering and a related buyback by BlackRock of up to $1 billion of the stock.
The move is being made as the latest round of Basel rules would maintain that Barclays set aside capital against the stake. Barclays intends to sell the stake before the rules would force the bank from counting it as capital. The bank is also shedding unsuccessful investments or businesses in an attempt to drive its return on equity back above 13%.
Barclays also indicated that CEO Robert Diamond will step down from BlackRock's board after the stake is sold.
Yahoo! (YHOO) is trending as Alibaba is buying back a 20% stake held by Yahoo! for $7.1 billion. Yahoo will sell half of its 40% stake in Alibaba for $6.3 billion in cash and up to $800 million in new Alibaba preferred stock. Yahoo! purchased the stake for about $1 billion in 2005. Yahoo! said it would return after-tax cash proceeds from the deal to shareholders, increasing a share buyback plan by $5 billion. Alibaba will make a royalty payment of $550 million to Yahoo! and will also continue to operate Yahoo China and pay continued royalties for up to four years. The move comes after years of speculation that Alibaba hoped to reclaim some or all of Yahoo!'s stake. Relations between the two companies have been tense since Yahoo! co-founder Jerry Yang was replaced by Carol Bartz. The two have also struggled to come to terms over Alibaba's payment segment Alipay as well as Yahoo!'s efforts to include more directors at Alibaba.
Mark Zuckerberg is another popular search. Just one day after the long-awaited Facebook (FB) initial public offering, the founder of the social networking site married his longtime girlfriend Priscilla Chan over the weekend.
The chatter on Main Street (a.k.a. Google, Yahoo! and other search sites) is always of interest to investors on Wall Street. Thus, each day, TheStreet compiles the stories that are trending on the Web, and highlights the news that could make stocks move. -- Written by Brittany Umar.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV