Yahoo to share Alibaba listing proceeds with shareholders

US Internet company says 'at least half' will go to investors

Yahoo Inc pledged to pay its shareholders at least half the proceeds from Alibaba Group Holding Ltd's initial public offering this fall and said it plans to keep a larger stake in the Chinese e-commerce company than expected.

Yahoo's roughly 24 percent stake in the world's largest Internet retailer is viewed on Wall Street as its most prized asset. On Tuesday, it said Alibaba had agreed to reduce the number of shares Yahoo is required to sell in the IPO to 140 million from 208 million previously.