by Christopher Freeburn | February 10, 2014 9:28 am
Shares of AutoNavi Holdings Limited (AMAP) jumped more than 24% in Monday pre-market trading after a Chinese Internet giant offered to buy the digital mapping company.
Alibaba already holds a 28% stake in AMAP. Now, China’s biggest online retailer says it will pay $21 per AMAP share to purchase the remainder of the company. The Alibaba offer is 27% higher than AMAP’s closing price on Friday. That would price the Alibaba full acquisition of AMAP at $1.45 billion, Reuters notes.
AMAP said that its board would appoint a special committee to consider the all-cash Alibaba proposal.
Yahoo (YHOO) retains a 24% stake in Alibaba. Yahoo had previously held a 40% stake in Alibaba, but sold much of that stake in 2012 to raise cash.
Analysts are looking forward to an eventual Alibaba IPO in the U.S. Acquiring AMAP would allow Alibaba to boost its presence in mobile services.
News of the deal sent YHOO stock up about 2% in premarket trading.
Source URL: http://investorplace.com/2014/02/alibaba-offer-take-autonavi-private-shoots-amap-stock-higher/
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