China law could influence Yahoo! takeover
Published: March 28, 2008 at 8:15 AM
SUNNYVALE, Calif., March 28 (UPI) -- A new law in China could interfere with the largest corporate takeover in history and influence mergers and investments in the future.
The law, which takes effect Aug. 1, allows regulators in China to review takeovers and acquisitions on anti-monopoly concerns if the deal involves Chinese companies. Since Yahoo! Inc. purchased 40 percent of China's Alibaba.com in 2005, the $44 billion hostile bid proposed by Microsoft Corp. earlier in February could be affected.
Chinese regulators could demand that the Microsoft-Yahoo! merger sell its $1 billion investment in Alibaba.com, The New York Times reported Friday.
"Multinational corporations will need to develop strategies for all the markets they operate in," one anti-trust expert said. "And China is a big market."
The expert, Nathan G. Bush with O'Melveny and Myers in Beijing, told the Times that China's regulatory influence would match those of "Brussels and Washington."
The law, which takes effect Aug. 1, allows regulators in China to review takeovers and acquisitions on anti-monopoly concerns if the deal involves Chinese companies. Since Yahoo! Inc. purchased 40 percent of China's Alibaba.com in 2005, the $44 billion hostile bid proposed by Microsoft Corp. earlier in February could be affected.
Chinese regulators could demand that the Microsoft-Yahoo! merger sell its $1 billion investment in Alibaba.com, The New York Times reported Friday.
"Multinational corporations will need to develop strategies for all the markets they operate in," one anti-trust expert said. "And China is a big market."
The expert, Nathan G. Bush with O'Melveny and Myers in Beijing, told the Times that China's regulatory influence would match those of "Brussels and Washington."
© 2008 United Press International. All Rights Reserved.
This material may not be reproduced, redistributed, or manipulated in any form.
This material may not be reproduced, redistributed, or manipulated in any form.
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