Story updated with reports of Microsoft bid.NEW YORK ( TheStreet) -- Reuters reported this afternoon that Microsoft ( MSFT)may make a bid for Yahoo! ( YHOO) alongside a partner. It comes after The Wall Street Journal reported that the internet search and news company has hired investment banks Goldman Sachs ( GS) and Allen & Company to put together pitch books for potential bidders of the company. Yahoo shares spiked roughly 6% to $15.9 after when news of the rumor broke. In 2008, Microsoft bid $44.6 billion in cash for Yahoo! but rejected the bid saying its $31 a share offer significantly undervalued the company. Yahoo! had also rejected previous merger talks in 2006 and 2007. "The proposal is not in the best interests of Yahoo and our stockholders," the company said in a statement at the time. "The board of directors is continually evaluating all of its strategic options in the context of the rapidly evolving industry environment and we remain committed to pursuing initiatives that maximize value for all stockholders." According to Reuters's reports other interested private equity buyers of Yahoo! are Providence Equity Partners, Hellman & Friedman, DST Global and Silver Lake. Alibaba, a 40% Yahoo! owned ecommerce website also stated its interest last week when chief executive Jack Ma said he was "very interested in purchasing Yahoo!" Shares of Research in Motion ( RIMM) rose as much as 15% to S24.37 on speculation first reported by U.K. newspaper The Independent that it has hired an investment bank to explore a sale and Vodaphone ( VOD) is a potential acquirer. Last week, AllThingsD's reported that Alibaba Chief Executive Jack Ma said he was "very interested in purchasing Yahoo!"
Bloomberg reported that Citigroup ( C) may receive lower bids in its sale of EMI group as a result of tougher market conditions for buyout financing. According to reports, Citi may fetch as much as $3.2 billion for the music label founded in 1931 and that owns publishing rights to The Beatles and Katy Perry. It's less than earlier valuations as high as $4 billion. If Citi were to sell its EMI Music label and publishing arm separately, the bank could raise as much as $3.75 billion.