Report : YP Holdings Plans First-Round Bid For Yahoo

(RTTNews) - YP Holdings LLC, the digital advertising business of what was formerly called Yellowpages.com, plans to submit a first-round bid Monday to merge with Yahoo! Inc.(YHOO), Bloomberg reported citing people familiar with the matter.

YP is working with Goldman Sachs Group Inc. to investigate a variety of strategic alternatives, which could include acquiring smaller firms or selling itself, the report said.

The company, controlled by Cerberus Capital Management, is valued at $1 billion to $1.5 billion. Its size makes it a candidate for a Reverse Morris Trust with Yahoo: a tax-free transaction in which YP would merge with a spun-off subsidiary of Yahoo's core business, the report said.

According to the report, GoDaddy Inc. and YP also have held preliminary high-level talks on a merger. A deadline for first-round bids for YP could be set for late May, one of the people set.