Uploaded by FinancialNewsOnline on Nov 15, 2011
The New York Times reported that Yahoo (NASDAQ:YHOO), instead of selling the company outright, is weighing a large scale of stock to one or more private equity firms using a controversial structure known as a private investment in public equity, or PIPE.
The story reported that a leveraged recapitalization that could take place as a part of a PIPE deal would raise the ownership percentage of new private equity investors, allowing them to block any subsequent takeover or activist shareholders.
Yahoo! (NASDAQ:YHOO) has potential upside of 15.4% based on a current price of $15.91 and an average consensus analyst price target of $18.36.
The story reported that a leveraged recapitalization that could take place as a part of a PIPE deal would raise the ownership percentage of new private equity investors, allowing them to block any subsequent takeover or activist shareholders.
Yahoo! (NASDAQ:YHOO) has potential upside of 15.4% based on a current price of $15.91 and an average consensus analyst price target of $18.36.
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