(CNN) -- Microsoft is talking to Yahoo! about an alternative transaction that doesn't involve an acquisition, the world's largest software maker said Sunday.
Yahoo said it is open to "pursuing any transaction which is in the best interest of our stockholders."
The announcement comes two weeks after Microsoft abruptly stopped its pursuit of Yahoo, withdrawing a sweetened $46 billion offer and saying it would not make a hostile bid for the Internet company.
"Microsoft is considering and has raised with Yahoo! an alternative that would involve a transaction with Yahoo! but not an acquisition of all of Yahoo!," a Microsoft statement said Sunday. "Microsoft is not proposing to make a new bid to acquire all of Yahoo! at this time, but reserves the right to reconsider that alternative .... There of course can be no assurance that any transaction will result from these discussions."
In response, Yahoo issued a statement in the evening, saying the company "has confirmed with Microsoft that it is not interested in pursuing an acquisition of all of Yahoo! at this time."
The statement goes on to say, Yahoo is open to "pursuing any transaction which is in the best interest of our stockholders," and that the company would be willing to evaluate alternative transactions, including "any Microsoft proposal."
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Microsoft has said the breakdown of the acquisition proposal came despite having raised its bid to $33 a share -- $5 billion above what it said was the current value of the offer -- and a 70 percent premium compared to its original offer.
Yahoo's board unanimously rejected the deal, saying it "substantially" undervalued the company.
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Mergers & Acquisitions
Hewlett-Packard Buying EDS for $13.9B
The deal represents a challenge to IBM. The company also released preliminary second-quarter guidance.
05/13/08 - 09:39 AM EDT
Hewlett-Packard Set to Swing at IBM
The PC maker is in talks to buy EDS in a deal worth up to $13 billion, potentially reshaping the technology outsourcing market.
05/12/08 - 05:29 PM EDT
Hewlett-Packard Closes In on EDS Deal
The two tech giants will reportedly merge in a transaction worth up to $13 billion. Shares of EDS jump 28% on the news.
05/12/08 - 03:35 PM EDT
Cablevision Buys Long Island's Newsday
The $650 million deal beat bids by News Corp. and the publisher of New York tabloid the Daily News.
05/12/08 - 03:13 PM EDT
Energy/Commodities
Gold Prices Killing Jewelers
Kitco gold analyst Jon Nadler says the cost of bullion is now so high it's sending jewelers bankrupt. Even Zales is at risk, he says.
2008-05-17 23:58:27.0
Crude Oil Closes Above $126
West Texas crude reached an intraday best at $127.65 -- its highest level ever.
2008-05-16 18:39:42.0
Dicker: Don't Treat Commodities Like Stocks
If you think of corn as an equity, you're bound to get burned.
2008-05-16 15:12:09.0
Crude Oil Futures Close Flat
Oil traversed a wide trading range Thursday, going as high as $126.64 a barrel and as low as $120.75.
2008-05-15 16:39:45.0
Hewlett-Packard Buying EDS for $13.9B
The deal represents a challenge to IBM. The company also released preliminary second-quarter guidance.
05/13/08 - 09:39 AM EDT
Hewlett-Packard Set to Swing at IBM
The PC maker is in talks to buy EDS in a deal worth up to $13 billion, potentially reshaping the technology outsourcing market.
05/12/08 - 05:29 PM EDT
Hewlett-Packard Closes In on EDS Deal
The two tech giants will reportedly merge in a transaction worth up to $13 billion. Shares of EDS jump 28% on the news.
05/12/08 - 03:35 PM EDT
Cablevision Buys Long Island's Newsday
The $650 million deal beat bids by News Corp. and the publisher of New York tabloid the Daily News.
05/12/08 - 03:13 PM EDT
Energy/Commodities
Gold Prices Killing Jewelers
Kitco gold analyst Jon Nadler says the cost of bullion is now so high it's sending jewelers bankrupt. Even Zales is at risk, he says.
2008-05-17 23:58:27.0
Crude Oil Closes Above $126
West Texas crude reached an intraday best at $127.65 -- its highest level ever.
2008-05-16 18:39:42.0
Dicker: Don't Treat Commodities Like Stocks
If you think of corn as an equity, you're bound to get burned.
2008-05-16 15:12:09.0
Crude Oil Futures Close Flat
Oil traversed a wide trading range Thursday, going as high as $126.64 a barrel and as low as $120.75.
2008-05-15 16:39:45.0
MARKET FEATURES
Asia: Indian Investors Shrug Off Inflation
05/17/08 - 06:44 PM EDT
HDB PTI SLT TCL TGI WIT
TSC Staff
Globetrotting Entrepreneurs
Go Green With Incentives
Eight Tips for Increasing Your Average Sale
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Stocks in India rose Friday as investors shook off government data that showed inflation hit a three-and-a-half year high. India's wholesale price index jumped to 7.83% for the week ending May 3, vs. 7.61% for the previous week, due to sharp increases in the price of foods and manufactured goods. Traders said inflation could go even higher, which sent the rupee falling to multi-year lows against the dollar.
The market "had anticipated a rise in inflation and discounted it," said Hitesh Agarwal, research head at Angel Broking. "There's consensus that government measures will bring it down to 6% in a few weeks."
The Bombay Stock Exchange's Sensex Index added 81.40, or 0.5%, to 17,434.94.
Shares of Indian mining company Sterlite(SLT - Cramer's Take - Stockpickr) surged 4.9% after TheStreet.com's Jim Cramer advised buying the stock on CNBC's "Stop Trading!" show Friday. Cramer said SLT will benefit from China's demand for zinc, copper and aluminum. American depositary shares of Sterlite, which trade on the NYSE, closed up 90 cents to $21.82 on three times the average daily volume.
Indian information technology company Wipro(WIT - Cramer's Take - Stockpickr) announced it will seek shareholder approval to enter the renewable energy business market. In a notice to shareholders, the company said it plans build custom solar and renewable energy plants and offer customized solutions for solar, small turbines, biogas, biomass fuel and geothermal energy systems. Shares of WIT slipped 2.4% to $13.27.
Premiere Global Services(PGI - Cramer's Take - Stockpickr) announced it has formed a partnership with global communications provider Tata Communications(TCL - Cramer's Take - Stockpickr) to jointly market business solutions supported by the Premiere Global Communications Operating Systems (PGiCOS), which will include Web conferencing and collaboration applications. Under the terms of the deal, Premiere Global will install and deploy its PGiCOS communications technology in India with Tata Communications providing network infrastructure, service and sales channels to the Indian market. Shares of TCL traded up 1% to $24.05.
Leading the decliners among Indian ADRs Friday were Patni Computer Systems(PTI - Cramer's Take - Stockpickr), which fell 2.1% to $13.48; HDFC Bank(HDB - Cramer's Take - Stockpickr), which dropped 1.6% to $108.05; and WNS(WNS - Cramer's Take - Stockpickr), which closed down 1.1% to $17.96.
Be sure to check out the Far East Portfolio at Stockpickr.com every night to find out which stocks in India and China are making big moves and announcing major news.
China Recap
Stocks in Hong Kong advanced Friday after the government released key economic numbers that showed strong growth for the region, due to rising investment, growing exports and booming tourism. Annual growth in gross domestic product rose to 7.1% in the first-quarter, well above expectations of 6.1%. The government said full-year economic growth will hit the top of its forecast range of 4% to 5%.
"Economies which are leveraged off China have continued to perform very well," said Glenn Maguire, Asia Pacific chief economist at Societe Generale. "Hong Kong is linked to the mainland via a services dynamic. We are confident growth will come in at around 6% this year."
The Shanghai Composite Index slipped 13.09 points, or 0.36%, to 3,624.23 and Hong Kong's Hang Seng Index rose 151.93 points, or 0.59%, to 25,748.33
Shares of China Finance Online( JRJC - Cramer's Take - Stockpickr) surged 18% after the company raised its first-quarter earnings and revenue forecast, due to strong demand for its key subscription services. The Chinese online financial information provider said first-quarter earnings will come in between the range of $4.5 million to $5 million, vs. previous guidance of $3.7 million to $4 million. The company said revenue guidance for the first-quarter will be $10.5 million to $10.8 million, vs. previous estimates of $10 million to $10.5 million. American depositary shares of China Finance Online, which trade on the Nasdaq, traded up $4.11 to $26.15 on heavy volume.
Piper Jaffray removed Chinese alternative energy company Yingli Green Energy( YGE - Cramer's Take - Stockpickr) from its Alpha List and slashed its price target to $60 from $65, despite saying the stock has some of the best risk reward for the solar sector. Shares of YGE fell 1.7% to $24.88. China Precision Steel( CPSL - Cramer's Take - Stockpickr), a U.S.-based firm which conducts a majority of its business in China through its wholly owned operating subsidiary, Shanghai Chengtong Precision Strip, announced that net income for the third-quarter soared 231% to $4.6 million, due to strong growth in exports of low-carbon, hard-rolled products and subcontracting work. Revenue grew 61.3% to $18.7 million, vs. $11.6 million from the previous year, and gross profit surged 58% to $5.3 million, vs. $3.4 million from a year ago. Shares of CPSL soared 37% to $5.97 on extremely heavy volume.
Noah Education( NED - Cramer's Take - Stockpickr), a Chinese provider of interactive education, reported a 114% jumped in net income for the third-quarter to $7.9 million, due to strong growth for its core products. Revenue for the third-quarter surged 8.5% to $26.3 million and gross margins were 55.3%. vs. 50.8% from a year earlier. The company said net revenue growth for the fourth-quarter will come in the range of 16% to 18% and net income growth for the fourth-quarter will come in between the range of 350% to 400%. Shares of NED jumped 16% to $7.99 on very heavy volume.
Some big movers Friday were Solarfun Power( SOLF - Cramer's Take - Stockpickr), which rose 23% to $22.84; China Techfaith(CNTF - Cramer's Take - Stockpickr), which soared 19% to $6.55; Fuwei Films( FFHL - Cramer's Take - Stockpickr), which jumped 13% to $3.45; and Origin Agritech( SEED - Cramer's Take - Stockpickr), which traded up 12% to $7.49.
Be sure to check out the Far East Portfolio at Stockpickr.com every night to find out which stocks in India and China are making big moves and announcing major news.
For more on Asia, check out Daniel Harrison's coverage at TheStreet.com.
05/17/08 - 06:44 PM EDT
HDB PTI SLT TCL TGI WIT
TSC Staff
Globetrotting Entrepreneurs
Go Green With Incentives
Eight Tips for Increasing Your Average Sale
Article Tools Email this Article Print this Article Rss Feed Del.icio.us Digg Facebook StumbleUpon Twitter Yahoo! BuzzPLAY BEAT THE STREET GAME NOW
Be the
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Stocks in India rose Friday as investors shook off government data that showed inflation hit a three-and-a-half year high. India's wholesale price index jumped to 7.83% for the week ending May 3, vs. 7.61% for the previous week, due to sharp increases in the price of foods and manufactured goods. Traders said inflation could go even higher, which sent the rupee falling to multi-year lows against the dollar.
The market "had anticipated a rise in inflation and discounted it," said Hitesh Agarwal, research head at Angel Broking. "There's consensus that government measures will bring it down to 6% in a few weeks."
The Bombay Stock Exchange's Sensex Index added 81.40, or 0.5%, to 17,434.94.
Shares of Indian mining company Sterlite(SLT - Cramer's Take - Stockpickr) surged 4.9% after TheStreet.com's Jim Cramer advised buying the stock on CNBC's "Stop Trading!" show Friday. Cramer said SLT will benefit from China's demand for zinc, copper and aluminum. American depositary shares of Sterlite, which trade on the NYSE, closed up 90 cents to $21.82 on three times the average daily volume.
Indian information technology company Wipro(WIT - Cramer's Take - Stockpickr) announced it will seek shareholder approval to enter the renewable energy business market. In a notice to shareholders, the company said it plans build custom solar and renewable energy plants and offer customized solutions for solar, small turbines, biogas, biomass fuel and geothermal energy systems. Shares of WIT slipped 2.4% to $13.27.
Premiere Global Services(PGI - Cramer's Take - Stockpickr) announced it has formed a partnership with global communications provider Tata Communications(TCL - Cramer's Take - Stockpickr) to jointly market business solutions supported by the Premiere Global Communications Operating Systems (PGiCOS), which will include Web conferencing and collaboration applications. Under the terms of the deal, Premiere Global will install and deploy its PGiCOS communications technology in India with Tata Communications providing network infrastructure, service and sales channels to the Indian market. Shares of TCL traded up 1% to $24.05.
Leading the decliners among Indian ADRs Friday were Patni Computer Systems(PTI - Cramer's Take - Stockpickr), which fell 2.1% to $13.48; HDFC Bank(HDB - Cramer's Take - Stockpickr), which dropped 1.6% to $108.05; and WNS(WNS - Cramer's Take - Stockpickr), which closed down 1.1% to $17.96.
Be sure to check out the Far East Portfolio at Stockpickr.com every night to find out which stocks in India and China are making big moves and announcing major news.
China Recap
Stocks in Hong Kong advanced Friday after the government released key economic numbers that showed strong growth for the region, due to rising investment, growing exports and booming tourism. Annual growth in gross domestic product rose to 7.1% in the first-quarter, well above expectations of 6.1%. The government said full-year economic growth will hit the top of its forecast range of 4% to 5%.
"Economies which are leveraged off China have continued to perform very well," said Glenn Maguire, Asia Pacific chief economist at Societe Generale. "Hong Kong is linked to the mainland via a services dynamic. We are confident growth will come in at around 6% this year."
The Shanghai Composite Index slipped 13.09 points, or 0.36%, to 3,624.23 and Hong Kong's Hang Seng Index rose 151.93 points, or 0.59%, to 25,748.33
Shares of China Finance Online( JRJC - Cramer's Take - Stockpickr) surged 18% after the company raised its first-quarter earnings and revenue forecast, due to strong demand for its key subscription services. The Chinese online financial information provider said first-quarter earnings will come in between the range of $4.5 million to $5 million, vs. previous guidance of $3.7 million to $4 million. The company said revenue guidance for the first-quarter will be $10.5 million to $10.8 million, vs. previous estimates of $10 million to $10.5 million. American depositary shares of China Finance Online, which trade on the Nasdaq, traded up $4.11 to $26.15 on heavy volume.
Piper Jaffray removed Chinese alternative energy company Yingli Green Energy( YGE - Cramer's Take - Stockpickr) from its Alpha List and slashed its price target to $60 from $65, despite saying the stock has some of the best risk reward for the solar sector. Shares of YGE fell 1.7% to $24.88. China Precision Steel( CPSL - Cramer's Take - Stockpickr), a U.S.-based firm which conducts a majority of its business in China through its wholly owned operating subsidiary, Shanghai Chengtong Precision Strip, announced that net income for the third-quarter soared 231% to $4.6 million, due to strong growth in exports of low-carbon, hard-rolled products and subcontracting work. Revenue grew 61.3% to $18.7 million, vs. $11.6 million from the previous year, and gross profit surged 58% to $5.3 million, vs. $3.4 million from a year ago. Shares of CPSL soared 37% to $5.97 on extremely heavy volume.
Noah Education( NED - Cramer's Take - Stockpickr), a Chinese provider of interactive education, reported a 114% jumped in net income for the third-quarter to $7.9 million, due to strong growth for its core products. Revenue for the third-quarter surged 8.5% to $26.3 million and gross margins were 55.3%. vs. 50.8% from a year earlier. The company said net revenue growth for the fourth-quarter will come in the range of 16% to 18% and net income growth for the fourth-quarter will come in between the range of 350% to 400%. Shares of NED jumped 16% to $7.99 on very heavy volume.
Some big movers Friday were Solarfun Power( SOLF - Cramer's Take - Stockpickr), which rose 23% to $22.84; China Techfaith(CNTF - Cramer's Take - Stockpickr), which soared 19% to $6.55; Fuwei Films( FFHL - Cramer's Take - Stockpickr), which jumped 13% to $3.45; and Origin Agritech( SEED - Cramer's Take - Stockpickr), which traded up 12% to $7.49.
Be sure to check out the Far East Portfolio at Stockpickr.com every night to find out which stocks in India and China are making big moves and announcing major news.
For more on Asia, check out Daniel Harrison's coverage at TheStreet.com.
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Pirates hijack Jordanian ship
18 May 2008, 1458 hrs ISTPirates on Saturday hijacked a Jordanian-flagged cargo ship off Somalia, the latest in a series of pirate attacks in the area this year.
UK PM's wife keen to meet Big B
18 May 2008, 1257 hrs IST
Sarah Brown, wife of British Prime Minister Gordon Brown, has revealed that the film star she most wanted to meet is the Bollywood legend Amitabh Bachchan.
Strong aftershock rattles China
18 May 2008, 0957 hrs IST
A 6.0-magnitude tremor shook China early Sunday , hampering frantic efforts to find earthquake survivors. 50,000 people are feared dead in last Monday's quake.
ASEAN to meet on Myanmar disaster
18 May 2008, 1254 hrs IST
Southeast Asian foreign ministers meet here Monday to discuss how to help Myanmar recover from a devastating cyclone, amid criticism their regional bloc has been too slow to respond.
Bush: Deal for Palestine before '09
18 May 2008, 1245 hrs IST
President Bush is trying to reassure Palestinians wary of his commitment to their side in the Mideast peace dispute.
Specials
Terror strikes Jaipur
A Hindi weekly had claimed that Jaipur had become a hub of terrorist activities.
Battleground Karnataka | China earthquake
My Times , My Voice
Has Lucknow been marketed properly as a popular tourist destination?
What is the primary reason for India being susceptible to recurring terror attacks?
More >>
Pakistan UK
India to resume Pakistan talks, meet new leaders
Benazir Bhutto was shot in the head: Aide
Pak envoy to Afghanistan freed in swap with militants
Pak lawyers' step up pressure to reinstate sacked judges
Pak lawyers to resume street protests
UK PM's wife keen to meet Big B
Soccer fans warned of tick danger in Euro '08
Watch: Queen's grandson weds Canadian
Bee Gees is UK PM's secret to 'stayin alive'
Jack the Ripper's crime scenes on display in London
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Abducted Indian freed by Afghans
Pirates hijack Jordanian ship off
Tropical storm Halong lashes northern Philippines
ASEAN to meet on Myanmar disaster
7 Mexican tourists kidnapped on main highway to Acapulco
Strong aftershock rattles China quake zone
Thousands flee as flood panic grips China
63 people pulled alive from quake debris in China: State media
Quake survivor ate cigarettes, drank urine
India starts airlifting quake relief to China
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Iraq detains 1,000 in anti-Al-Qaida crackdown
Olmert to be questioned by police next week: Report
Iraq offers cash for weapons in crackdown against Qaida
Bin Laden slams West over Israel in new audio message
Lebanese government revokes measures against Hezbollah
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Amputee runner wins right to try for Olympics
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Erick Schonfeld
TechCrunch.com
Saturday, May 17, 2008; 3:09 PM
Even as Carl Icahn rallies angry shareholders to try to force Yahoo back to the bargaining table with Microsoft, one of the "strategic alternatives" Yahoo may still be trying to work out in the background is a search advertising deal with Google. There is a 60 to 70 percent gap between what Google collects for search ads and what Yahoo collects, so simply handing over a portion of its search advertising inventory to Google would boost its cash flow and profits considerably?perhaps adding as much as $1 billion or more in cash flow.
But how could such a deal pass muster with antitrust authorities, who are already investigating the test run Google and Yahoo did last month with only 3 percent of Yahoo's search ads?
It would all depend on how a deal is structured.
One line of thinking is that Yahoo and Google could get away with a deal that only hands over 10 to 20 percent of Yahoo's search advertising inventory. This would need to be on a non-exclusive basis, meaning that if somebody else could come in and beat Google's revenue-per-search-query Yahoo would be free to hand them the ad inventory instead. The assumption was that this would be the 10 to 20 percent of keywords that bring in the highest revenues for Yahoo. (We discussed this point in our interview with Citi analyst Mark Mahaney last month, for instance).
But there is another way Yahoo could get a lot more bang for its buck in a deal with Google. Instead of handing over the most valuable search terms, it would be better off handing over the ones with the biggest delta in profitability (the difference between what Google makes on those terms and what Yahoo makes). Yahoo does not have any trouble getting decent ad rates for the most desirable search terms. Call those the head keywords that bring in the most revenues. What it has trouble making money on are the keywords in the long tail and torso of its advertising inventory. And that's exactly where Google excels at squeezing out relevant matches and clickthroughs.
If Yahoo can identify which basket of search terms represents the biggest profitability gap compared to what Google makes, it can maximize what part of its ad inventory to outsource to Google. These terms will likely turn out to be the ones that are currently the least valuable ones to Yahoo. Picking the 10 to 20 percent of keywords where the delta is the greatest between what Yahoo and Google are able to charge would effectively multiply the impact of the deal. After all, there is no point in handing over high-revenue search terms that Yahoo is already matching Google on in terms of profitability.
If the numbers work out and antitrust can be avoided, such a deal would certainly be a way to appease (or at least answer) Yahoo's increasingly irate shareholders. But if Yahoo is serious about striking a deal with Google, it should do so before the proxy battle with Icahn comes to a head.
(Photo credit: Jack Versloot).
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Erick Schonfeld
TechCrunch.com
Saturday, May 17, 2008; 3:09 PM
Even as Carl Icahn rallies angry shareholders to try to force Yahoo back to the bargaining table with Microsoft, one of the "strategic alternatives" Yahoo may still be trying to work out in the background is a search advertising deal with Google. There is a 60 to 70 percent gap between what Google collects for search ads and what Yahoo collects, so simply handing over a portion of its search advertising inventory to Google would boost its cash flow and profits considerably?perhaps adding as much as $1 billion or more in cash flow.
But how could such a deal pass muster with antitrust authorities, who are already investigating the test run Google and Yahoo did last month with only 3 percent of Yahoo's search ads?
It would all depend on how a deal is structured.
One line of thinking is that Yahoo and Google could get away with a deal that only hands over 10 to 20 percent of Yahoo's search advertising inventory. This would need to be on a non-exclusive basis, meaning that if somebody else could come in and beat Google's revenue-per-search-query Yahoo would be free to hand them the ad inventory instead. The assumption was that this would be the 10 to 20 percent of keywords that bring in the highest revenues for Yahoo. (We discussed this point in our interview with Citi analyst Mark Mahaney last month, for instance).
But there is another way Yahoo could get a lot more bang for its buck in a deal with Google. Instead of handing over the most valuable search terms, it would be better off handing over the ones with the biggest delta in profitability (the difference between what Google makes on those terms and what Yahoo makes). Yahoo does not have any trouble getting decent ad rates for the most desirable search terms. Call those the head keywords that bring in the most revenues. What it has trouble making money on are the keywords in the long tail and torso of its advertising inventory. And that's exactly where Google excels at squeezing out relevant matches and clickthroughs.
If Yahoo can identify which basket of search terms represents the biggest profitability gap compared to what Google makes, it can maximize what part of its ad inventory to outsource to Google. These terms will likely turn out to be the ones that are currently the least valuable ones to Yahoo. Picking the 10 to 20 percent of keywords where the delta is the greatest between what Yahoo and Google are able to charge would effectively multiply the impact of the deal. After all, there is no point in handing over high-revenue search terms that Yahoo is already matching Google on in terms of profitability.
If the numbers work out and antitrust can be avoided, such a deal would certainly be a way to appease (or at least answer) Yahoo's increasingly irate shareholders. But if Yahoo is serious about striking a deal with Google, it should do so before the proxy battle with Icahn comes to a head.
(Photo credit: Jack Versloot).
More on washingtonpost.com
• More Technology News
» washingtonpost.com
placeholder
» Related Topics & Web Content
From Our Partner
• Hit Pause On The Evil Button: Google Assists In Arrest Of Indian Man
• CBS Centralizes Its Superdistribution of Videos on the Web
• Scribd Goes Straight, Bans Porn
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Saturday, May 17, 2008
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$0 stock trades. 10 free per month.By John Ruwitch and Jason Li
BEICHUAN, China (Reuters) - Thousands of Chinese fled to the hills on Saturday amid fears a lake formed near the epicenter of this week's earthquake would burst its banks.
The water level at the lake formed after aftershocks blocked a river was rising rapidly in Beichuan and "may burst its bank at any time", the official Xinhua news agency said.
A paramilitary officer told Reuters the likelihood of the lake bursting its banks was "extremely big".
A witness said by telephone the military was evacuating everyone in Beichuan, even rescue workers.
A Reuters journalist fled an area near the Beichuan Middle School, which President Hu Jintao visited on Friday. Soldiers were talking on the radio saying "all retreat" and there was a lot of dust in the air. Troops were leaving fast.
China has said it expects the final death toll from Monday's 7.9 magnitude earthquake to exceed 50,000. About 4.8 million people have lost their homes and the days are numbered in which survivors can be found.
Cabinet spokesman Guo Weimin, taking a long pause to compose himself as he read from an updated casualty report at a news conference, put the death toll so far at 28,881.
Sichuan Vice-Governor Li Chengyun said more than 188,100 people have been injured and about 10,600 people remain buried under rubble. About 2.6 million tents are needed to shelter 4.8 million displaced residents,
Hu Jintao visits Sichuan province
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Hanwang grieves lost children
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China puts quake death toll at almost 29,000
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5:49am EDT
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powered by Sphere
Featured Broker sponsored link
$0 stock trades. 10 free per month.By John Ruwitch and Jason Li
BEICHUAN, China (Reuters) - Thousands of Chinese fled to the hills on Saturday amid fears a lake formed near the epicenter of this week's earthquake would burst its banks.
The water level at the lake formed after aftershocks blocked a river was rising rapidly in Beichuan and "may burst its bank at any time", the official Xinhua news agency said.
A paramilitary officer told Reuters the likelihood of the lake bursting its banks was "extremely big".
A witness said by telephone the military was evacuating everyone in Beichuan, even rescue workers.
A Reuters journalist fled an area near the Beichuan Middle School, which President Hu Jintao visited on Friday. Soldiers were talking on the radio saying "all retreat" and there was a lot of dust in the air. Troops were leaving fast.
China has said it expects the final death toll from Monday's 7.9 magnitude earthquake to exceed 50,000. About 4.8 million people have lost their homes and the days are numbered in which survivors can be found.
Cabinet spokesman Guo Weimin, taking a long pause to compose himself as he read from an updated casualty report at a news conference, put the death toll so far at 28,881.
Sichuan Vice-Governor Li Chengyun said more than 188,100 people have been injured and about 10,600 people remain buried under rubble. About 2.6 million tents are needed to shelter 4.8 million displaced residents,
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