Yahoo shares suspended amid rumours

Shares of Internet portal Yahoo fell sharply in early Nasdaq trading

Shares of Internet portal Yahoo fell sharply in early Nasdaq trading

before being halted because of news of a major announcement.

Prior to the stock's halt, shares of Yahoo had fallen $1-13/32, or6.3 percent, to $20-31/32, their lowest level since September 1998.The company was not immediately available for comment.

Merrill Lynch analyst Mr Henry Blodget, once one of the biggestInternet bulls, questioned the company's decision to cancel itsappearance at the brokerage's Internet Conference later in the week.

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In a report on Yahoo, he suggested the company was planning to giveguidance on its earnings or announce a restructuring, its intentionto acquire another company, it is entering into a strategicinvestment or it is making a major management change.

The First Call/Thomson Financial consensus analyst estimate forYahoo's first quarter is 5 cents. Besides Mr Blodget's report, therewas no indication that the news release would be about earnings.