Wall Street analysts tempered their view on Yahoo Inc's stock after the company's plans for a tax-free spinoff of its stake in Alibaba Group Holdings Ltd hit a snag.
The company's shares were down 1.1 percent at $30.57 in early trading on Wednesday.
Yahoo said on Tuesday the U.S. Internal Revenue Service denied its request for a private letter ruling on a possible tax-free deal that could fetch it $23 billion.
PLRs are requested when a company wants to confirm if a prospective transaction could result in a tax violation.
The IRS, however, could approve or deny the tax-free status later.
