A Surprise Ruling Puts Altaba Stock's Future Trading in Limbo

Andrew Bary Technology AABA BABA VZ Alibaba Group Holding Verizon Communications Altaba Financial Investments Portfolio/Fund/Asset Management Financial Services Investing/Securities BABA North America United States Delaware Southern U.S. Corporate Changes Financial Performance Share Price Movement/Disruptions Corporate Actions Corporate/Industrial News Stock Delistings Stock Trading Resumptions Content Types Factiva Filters C&E Exclusion Filter C&E Industry News Filter AABA BABA I/AMG I/IAV I/XFFX M/FCL N/CAC N/CHG N/CNW N/DJN N/DLS N/PFM N/TRR N/WER R/DE R/NME R/US R/USS VZ Barrons.com Barrons Blogs Wires Fortune 500 CODES_REVIEWED Companies Feature Technology Investing Media author Andrew Bary author|Andrew Bary topicid 6151 name Andrew Bary extractedtext Andrew Bary rank 1 codetype author code andrew_bary nameformat surname_first author Andrew Bary id Andrew Bary barrons_display_subject BARINDTECH barrons_display_subject|BARINDTECH canbedisplaysubject true codetype BARRONS_DISPLAY_SUBJECT name Technology source MANUAL code BARINDTECH value BARINDTECH status modified co alibab co|alibab country US symbol BABA codetype co displayname Alibaba Group why occur extractedtext Alibaba Group Holding source FACTIVA seoname alibaba_group_holding name Alibaba Group Holding relevancerange low chartingsymbol STOCK/US/XNYS/BABA fcode alibab fullextractedtext Alibaba Group Holding ticker BABA confidence 100 subcat com code alibab relevance 25 significance passing onlinesignificance passing-mention confidencerange high exchangeisocode XNYS co belatt co|belatt country US symbol VZ codetype co displayname Verizon Communications why occur extractedtext Verizon Communications source FACTIVA seoname verizon_communications name Verizon Communications countrycode US relevancerange low chartingsymbol STOCK/US/XNYS/VZ fcode belatt fullextractedtext Verizon Communications ticker VZ confidence 100 subcat com code belatt relevance 11 significance passing onlinesignificance passing-mention confidencerange high exchange NYSE exchangeisocode XNYS co YAHCOR co|YAHCOR symbol AABA country US codetype co displayname Altaba extractedtext Altaba source MANUAL code aaba name Altaba significance prominent onlinesignificance prominent exchange U.S.: Nasdaq exchangeisocode XNAS chartingsymbol FUND/US/XNAS/AABA fcode YAHCOR status modified company AABA company|AABA name Altaba significance PROMINENT company VZ company|VZ name Verizon Communications significance PASSING-MENTION company BABA company|BABA name Alibaba Group Holding significance PASSING-MENTION djn N/TRR djn|N/TRR codetype djn why about source FACTIVA code n_trr name N/TRR significance prominent onlinesignificance prominent fcode N/TRR djn N/PFM djn|N/PFM codetype djn name N/PFM why lineage source FACTIVA code n_pfm fcode N/PFM djn N/CAC djn|N/CAC codetype djn name N/CAC why lineage source FACTIVA code n_cac fcode N/CAC djn BABA djn|BABA codetype djn why occur source FACTIVA code baba name BABA significance passing onlinesignificance passing-mention fcode BABA djn VZ djn|VZ codetype djn why occur source FACTIVA code vz name VZ significance passing onlinesignificance passing-mention fcode VZ djn AABA djn|AABA codetype djn why about source FACTIVA code aaba name AABA significance prominent onlinesignificance prominent fcode AABA djn I/IAV djn|I/IAV codetype djn name I/IAV why lineage source FACTIVA code i_iav fcode I/IAV djn I/AMG djn|I/AMG codetype djn name I/AMG why association source FACTIVA code i_amg fcode I/AMG djn M/FCL djn|M/FCL codetype djn name M/FCL why lineage source FACTIVA code m_fcl fcode M/FCL djn N/DLS djn|N/DLS codetype djn why about source FACTIVA code n_dls name N/DLS significance prominent onlinesignificance prominent fcode N/DLS djn N/CHG djn|N/CHG codetype djn name N/CHG why lineage source FACTIVA code n_chg fcode N/CHG djn N/CNW djn|N/CNW codetype djn name N/CNW why lineage source FACTIVA code n_cnw fcode N/CNW djn R/US djn|R/US codetype djn why about source FACTIVA code r_us name R/US significance prominent onlinesignificance prominent fcode R/US djn R/DE djn|R/DE codetype djn why about source FACTIVA code r_de name R/DE significance prominent onlinesignificance prominent fcode R/DE djn R/NME djn|R/NME codetype djn name R/NME why lineage source FACTIVA code r_nme fcode R/NME djn R/USS djn|R/USS codetype djn name R/USS why lineage source FACTIVA code r_uss fcode R/USS djn I/XFFX djn|I/XFFX codetype djn why about source FACTIVA code i_xffx name I/XFFX significance prominent onlinesignificance prominent fcode I/XFFX djn N/DJN djn|N/DJN codetype djn name N/DJN source DJN-CONTROL code n_djn value N/DJN status modified inactivebydefault true djn N/WER djn|N/WER codetype djn name N/WER source DJN-CONTROL code n_wer value N/WER status modified inactivebydefault true first_publish_headline A Surprise Ruling Puts Altaba Stock’s Future Trading in Limbo first_publish_headline|A Surprise Ruling Puts Altaba Stock’s Future Trading in Limbo flow NWREGULAR flow|NWREGULAR codetype FLOW name Wires source MANUAL value NWREGULAR code NWREGULAR status modified flow Barrons.com flow|Barrons.com codetype FLOW name Barrons.com source MANUAL value Barrons.com code online status modified name Online title Product code Barrons.com flow Barrons Blogs flow|Barrons Blogs codetype FLOW source MANUAL title Product code Barrons_Blogs name Barrons Blogs value Barrons Blogs status modified headline A Surprise Ruling Puts Altaba Stock’s Future Trading in Limbo headline|A Surprise Ruling Puts Altaba Stock’s Future Trading in Limbo idx xf500 idx|xf500 codetype idx why about source FACTIVA code xf500 name Fortune 500 significance prominent onlinesignificance prominent fcode xf500 in i831 in|i831 codetype in name Financial Investments why lineage source FACTIVA code i831 fcode i831 in i83107 in|i83107 codetype in name Portfolio/Fund/Asset Management why association source FACTIVA code i83107 fcode i83107 in ifinal in|ifinal codetype in name Financial Services why lineage source FACTIVA code ifinal fcode ifinal in iinv in|iinv codetype in name Investing/Securities why lineage source FACTIVA code iinv fcode iinv media media-2 media|media-2 responsive layout wrap softcrop Horizontal imphotoid im-113054 location https://images.barrons.com/im-113054/?size=1.5 media media-1 media|media-1 softcrop Horizontal imphotoid im-113054 location https://images.barrons.com/im-113054/?size=1.5 ns cstre ns|cstre codetype ns why about source FACTIVA code cstre name Stock Trading Resumptions significance prominent onlinesignificance prominent fcode cstre ns c15 ns|c15 codetype ns name Financial Performance why lineage source FACTIVA code c15 fcode c15 ns c1522 ns|c1522 codetype ns name Share Price Movement/Disruptions why lineage source FACTIVA code c1522 fcode c1522 ns cactio ns|cactio codetype ns name Corporate Actions why lineage source FACTIVA code cactio fcode cactio ns ncat ns|ncat codetype ns why lineage source FACTIVA code ncat name Content Types internalsymbol true fcode ncat ns nfact ns|nfact codetype ns why lineage source FACTIVA code nfact name Factiva Filters internalsymbol true fcode nfact ns nfce ns|nfce codetype ns why lineage source FACTIVA code nfce name C&E Exclusion Filter internalsymbol true fcode nfce ns nfcpin ns|nfcpin codetype ns why lineage source FACTIVA code nfcpin name C&E Industry News Filter internalsymbol true fcode nfcpin ns cdelis ns|cdelis codetype ns why about source FACTIVA code cdelis name Stock Delistings significance prominent onlinesignificance prominent fcode cdelis ns c02 ns|c02 codetype ns name Corporate Changes why lineage source FACTIVA code c02 fcode c02 ns ccat ns|ccat codetype ns name Corporate/Industrial News why lineage source FACTIVA code ccat fcode ccat nwchain SB505428111741590246370045855868825269906181 nwchain|SB505428111741590246370045855868825269906181 pe BABA pe|BABA lastname BABA codetype pe displayname BABA extractedtext BABA source FACTIVA code baba name BABA nameformat surname_first re usa re|usa codetype re why about source FACTIVA subcat cntry code usa name United States significance prominent onlinesignificance prominent fcode usa re usde re|usde codetype re why about source FACTIVA subcat sp code usde name Delaware significance prominent onlinesignificance prominent fcode usde re namz re|namz codetype re why lineage source FACTIVA subcat snr code namz name North America fcode namz re uss re|uss codetype re why lineage source FACTIVA subcat sr code uss name Southern U.S. fcode uss relay SYND relay|SYND codetype RELAY name Syndication source EXPANDER value SYND code synd status modified statistic CODES_REVIEWED statistic|CODES_REVIEWED name CODES_REVIEWED value CODES_REVIEWED codetype STATISTIC code CODES_REVIEWED subject BARCOMP subject|BARCOMP codetype SUBJECT title Companies code BARCOMP name Companies canbedisplaysubject true ruleid BARCOMP value BARCOMP status modified subject BARINVST subject|BARINVST codetype SUBJECT title Investing code BARINVST name Investing canbedisplaysubject true ruleid BARINVST value BARINVST status modified subject BARINDTECH subject|BARINDTECH codetype SUBJECT title Technology code BARINDTECH name Technology canbedisplaysubject true ruleid BARINDTECH value BARINDTECH status modified subject BARMEDIA subject|BARMEDIA codetype SUBJECT title Media code BARMEDIA name Media canbedisplaysubject true ruleid BARMEDIA value BARMEDIA status modified subject BARFEATURE subject|BARFEATURE codetype SUBJECT title Feature code BARFEATURE name Feature ruleid BARFEATURE value BARFEATURE canbedisplaybrand true status modified wordcount 641 wordcount|641 Victor J. Blue/Bloomberg A Surprise Ruling Puts Altaba Stock’s Future Trading in Limbo A Surprise Ruling Puts Altaba Stock’s Future Trading in Limbo A Surprise Ruling Puts Altaba Stock’s Future Trading in Limbo

The former Yahoo! will stop trading on the Nasdaq at the close of business on Wednesday, but it’s unclear just where and when trading will resume.

A Surprise Ruling Puts Altaba Stock’s Future Trading in Limbo

The former Yahoo! will stop trading on the Nasdaq at the close of business on Wednesday, but it’s unclear just where and when trading will resume.

https://www.altaba.com/news-releases/news-release-details/nasdaq-halt-trading-altaba-shares-october-2-2019 https://www.barrons.com/articles/altaba-finally-rewards-its-shareholders-but-the-ultimate-payoff-is-uncertain-51569336089 https://www.finra.org/sites/default/files/2019-10/UPC_33-2019_AABA_Altaba.pdf https://www.barrons.com/articles/altaba-investors-may-not-want-to-stick-around-much-longer-51554458401 https://www.barrons.com/articles/altaba-alibaba-stock-liquidating-yahoo-51554304876 mailto:andrew.bary@barrons.com A Surprise Ruling Puts Altaba Stock’s Future Trading in Limbo By Andrew Bary Victor J. Blue/Bloomberg

Altaba will stop trading on the Nasdaq at the close of business on Wednesday, but it’s unclear just where and when trading will resume.

Some investors and analysts had expected that Altaba (ticker: AABA) would start trading over the counter on the Pink Sheets under a new ticker symbol as early as Monday. However, in a surprise move, the Financial Industry Regulatory Authority (Finra) issued a bulletin Wednesday stating that it currently “does not intend to issue an OTC quoting and trading symbol for AABA shares following its delisting from the Nasdaq.”

Altaba had no immediate comment.

The company is due to be delisted from the Nasdaq on Monday. Under its liquidation plan, it plans to file a certificate of dissolution in Delaware on Friday. The Nasdaq plans to halt trading at the close Wednesday, and that halt will last through Friday.

Finra stated in its bulletin that it will be permissible to transfer Altaba shares, or the rights to receive dissolution distributions, in the absence of a ticker symbol, but it isn’t clear now where that trading venue will be.

Altaba has said that it will request that the Depository Trust Co. maintain records representing the right to receive post-dissolution liquidating distributions. One institutional investor says his understanding is there will be quotes from brokers on Altaba after the delisting, but there may not be highly visible markets.

Altaba is the former Yahoo!, which changed its name after selling its internet business to Verizon Communications (VZ) in June 2017. The company’s market value is around $10 billion.

Altaba shares are trading at $19.57, down seven cents. The company made a big distribution of $51.50 a share on Sept. 23 as part of its liquidation program announced in April. Analysts and investors estimate that the company’s current asset value is around $22.50 a share, with nearly all that value consisting of cash and equivalents.

Altaba amounts to an unusual arbitrage situation. There’s uncertainty about the timing and size of future distributions to holders. The company has said it aims to make distribution to holders in late 2020, but that hinges on approval by the Delaware courts, which will oversee the liquidation process. One or more small liquidation payments are expected to follow a large expected 2020 payment.

A Delaware decision likely will hinge on the court’s comfort about the company’s Chinese tax liability.

The company has reserved about $8 billion for potential Chinese taxes on Altaba’s large sales of Alibaba Group Holding (BABA) stock, which had been its most valuable asset. Altaba has received oral notification from Chinese tax authorities that no capital-gains tax levies will be imposed on Alibaba stock sales made in 2018 and Wall Street expects favorable tax rulings on Alibaba stock sales in other years, including 2019.

However, it’s unclear when such rulings may come and whether Delaware courts will allow distributions to Altaba holders based on oral, rather than written, representations by Chinese tax authorities. Altaba has stated that it believes that oral representation will be sufficient for the court to allow the distribution to its holders. In a worst-case scenario, the holdback of funds could last for years, given the current 10-year statute of limitations on such Chinese taxes.

Write to Andrew Bary at andrew.bary@barrons.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.