Yahoo shares up on report that Alibaba is preparing bid

Shares in Yahoo rose on reports that China's Alibaba Group was preparing a takeover bid with private equity firms Blackstone and Bain Capital.

Yahoo shares ended Thursday trading on the Nasdaq tech exchange 3.3% higher, having been 4.8% up at one point.

Unconfirmed reports said the consortium may pay up to $20 per share - well above Thursday's close of $16.23 - valuing Yahoo at $25bn (£16bn).

Alibaba, one of China's top internet firms, said it was weighing options.

"Alibaba Group has not made a decision to be part of a whole company bid for Yahoo," said John Spelich, spokesman of Alibaba Group.