Alibaba heads for U.S. IPO after HK negotiations stall - report

|By:, SA News Editor

Alibaba reportedly plans to carry out its blockbuster IPO in the U.S. after negotiations with the Hong Kong stock exchange broke down over the e-commerce giant's demand that its "partners" - a group of founders and senior managers - maintain control over the composition of the board.

Listing in New York would allow the partners to keep their grip of the company due to the possibility of creating a dual-class structure where one set of shares provides more voting rights than another.

Alibaba has hired U.S. law firms to start working on the listing and intends to soon appoint banks.

The IPO could raise an estimated HK$100B ($12.9B) and value Alibaba at up to $120B. That would be a boon to Yahoo (YHOO) and Softbank (SFTBF.PK), which own 24% and 35% respectively.