Antitrust officials delay vote on AOL/Time Warner-WSJ
NEW YORK, Nov 28 (Reuters) - Federal antitrust enforcers reviewing America Online Inc.'s (NYSE:AOL - news) acquisition of Time Warner Inc. (NYSE:TWX - news) delayed a scheduled Thursday vote to block the deal as settlement talks made new progress, the Wall Street Journal reported in its electronic edition Tuesday.
Federal Trade Commission officials considered a new Internet-access contract between Time Warner and an AOL competitor, EarthLink Inc. (NasdaqNM:ELNK - news), as a major step forward, the paper said, citing people briefed on the talks.
But officials wanted more information on the EarthLink contract and could still seek changes before approving a merger, the paper reported its sources as saying.
The companies have been negotiating for weeks over the conditions aimed at satisfying Federal Trade Commission concerns about preserving competition.
FTC officials are also seeking assurances that Time Warner's news and entertainment programming will remain available to AOL's Internet competitors if the companies are allowed to merge, the sources were reported as saying.
AOL and Time Warner on Monday rejected this demand, the paper reported.
The EarthLink contract moved settlement talks ahead because the pact would offer high-speed access to EarthLink below prices offered by phone companies for similar service, the paper reported people briefed on the talks as saying.
A series of meetings are planned this week to go over other contract terms, delaying a previously scheduled Thursday vote against the deal by the five-member commission, the paper reported.
AOL shares finished up $1.07 at $43.97 on the New York Stock Exchange Monday. The stock has a 52-week high of $95.63 and a 52-week low of $37.25.
Shares of Time Warner closed up $2.80 at $65.87, also on the New York Stock Exchange on Monday. Time Warner shares have a 52-week high of $105.5 and a 52-week low of $57.5. |
