Friday, March 28, 2008

Is China The New Regulator?

The NY Times is reporting that a new law in China could impede the Microsoft deal for Yahoo if things progress beyond August 1st, once a new Chinese anitmonopoly law takes effect. Yahoo's 40% stake in Alibaba.com could cause the problem. Beyond the Microsoft-Yahoo deal, this new law could place China in a position similar to the U.S. and European Union with regard to regulatory oversight. Increased cross-investment will only continue to complicate regulatory matters.

Tickers: MSFT, YHOO

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