LONDON (ShareCast) - Yahoo tried to calm investors on Wednesday after its shares slid nearly 8% the day before due to worries about a potential tax change that could affect the tech company's spin-off of its $40bn stake in Alibaba.
The US Internal Revenue Service said in a statement it was considering changing its rules regarding spin-offs and would suspend requests starting on Tuesday.

Yahoo assured that any change would not affect ruling requests that had already been filed.

"Yahoo understands that the IRS's statement is not specific to Yahoo's planned Q4 2015 spin-off of its remaining stake in Alibaba Group and Yahoo Small Business, reflects no change in applicable law, and does not affect previously filed ruling request," a company spokeswoman said.



IRS officials said that a rule change could occur, but pointed out they had made "no decisions as to the current ruling practice, as to whether to issue guidance regarding this aspect and related aspects of spinoffs, or as to what the substance of any guidance might be".

Although Yahoo said it hoped to complete the spin-off by the end of 2015, this could complicate its plans.

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