Three stories today re: AOL:
10:08 am AOL may be looking to team with Adelphia Comm., BusinessWeek
Adelphia Communications (ADLAC: news, msgs) is up 1 9/16 to 62 9/16. James Boyle of First Union Securties believes AOL may be looking to set up a strategic alliance with the cable company, as reported in the current issue of BusinessWeek. Boyle also told the business weekly that Adelphia has "superb management" and undervalued assests, and has a private market value of $91 a share. This is the third possible deal regarding AOL reported Friday (see 9:23 and 9:55 items).
--9:55 am AOL may be getting closer to Wal-Mart, SSB
America Online (AOL: news, msgs) is up 3/4 to 87 and Wal-Mart (WMT: news, msgs) is climbing 1 9/16 to 63 13/16. Analyst Rick Church at Salomon Smith Barney believes that an announcement regarding an alignment of the two companies "is imminent." The alliance could involve a cross selling agreement or establishing Wal-Mart as another ISP brand for AOL, and would be a positive for both companies, says Church. SSB analyst David Strasser feels the possible combination would be a negative for companies like Circuit City (CC: news, msgs) and Best Buy (BBY: news, msgs). But he feels Tandy Corp. (TAN: news, msgs) would be insulated. Circuit City is up 7/8 to 39 3/16, Best Buy is 1 better at 44 3/4 and Tandy is inching up 1/8 to 70 7/8.
--9:23 am AOL eyeing a stake in Satyam Infoway, paper
Shares of India's Satyam Infoway (SIFY: news, msgs) are flying 24 1/2, or 17 percent higher, to 170 1/2 in pre-market trading over the Island ECN on a report that America Online (AOL: news, msgs) was preparing to purchase a "substantial" stake in the company. The Hindustan Times reported that AOL may be seeking a stake of 30 to 35 percent in the Indian Internet service provider. B Ramalinga Raju, chairman of Satyam declined to comment on the proposed deal, but when specifically asked to deny the same, he said told the paper, "we are looking at various opportunities to raise funds and such discussions are part of that exercise." Satyam currently has a market capitalization of approximately $3 billion, noted Hindustan. AOL shares are 1 3/4 better at 88 in Instinet trading.
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