Ex-AOL boss looking to raise cash for Yahoo bid

NEW YORK (Reuters) - Former AOL Chief Executive Jonathan Miller is seeking as much as $30 billion from investors to buy all or part of Yahoo Inc, The Wall Street Journal reported on Tuesday, boosting shares of the Web search engine by 7 percent.

But raising so much money in the current market may be tough, with banks unwilling to lend and several deals falling apart as companies find it nearly impossible to issue debt to finance acquisitions.

Miller, an Internet industry veteran, wants to raise funds to buy Yahoo for $20 to $22 a share, or $28 billion to $30 billion, for the entire company, the Journal reported, citing people familiar with the matter.

Yahoo has a market value of $15.7 billion.

Speculation about possible deals has been widespread after Microsoft Corp withdrew a $47.5 billion offer to buy Yahoo in May after Yahoo's board and its then-CEO Jerry Yang rejected it as too low.

Sandeep Aggrawal, an analyst at Collins Stewart, said Miller's move could make Yahoo a more valuable asset, increasing the pressure on Microsoft to do a deal focused on the Internet company's search assets.

Microsoft CEO Steve Ballmer has ruled out his company's interest in buying all of Yahoo, but indicated a search deal may still be possible.

"Miller is a well-regarded executive who did a good job at AOL and is seen as an Internet visionary," Aggrawal said.

Miller led AOL, Time Warner Inc's online advertising division, from 2002 to 2006. He is now a partner at Velocity Interactive Group, an investment firm focused on digital media.  Continued...