Yahoo! (YHOO) Pitches Leveraged Recap

November 2, 2011 8:19 AM EDT
The Yahoo! (Nasdaq: YHOO) takeover drama continues....

Yahoo! is now pitching a "leveraged recapitalization" idea to private-equity firms, according to the latest reports from the Wall Street Journal.

This is one of several options on the table for the Internet company which announced in September it is reviewing strategic options after ousting its CEO Carol Bartz.

Under one scenario, a private-equity firm would take a 20 percent stake in the company for cash and bank debt that would bolster Yahoo!'s balance sheet.

The recapitalization plan could allow Yahoo! to pay shareholders a dividend. Still many are likely to be disappointed as they have been holding out for a sale of the entire company.

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