The AOL logo is seen on the exterior of the building housing the corporate headquarters of companies in New York, May 28, 2009.
Credit: Reuters/Lucas JacksonNEW YORK | Fri 09/09/2011 4:42 pm EDT
NEW YORK (Reuters)-investors sent shares of AOL down more than 5% on Friday after conflicting reports about a possible tie-up between AOL and Yahoo.
AOL CEO Tim Armstrong would have approached private equity firms to gauge interest in an agreement with Yahoo that would put Armstrong as head of the new company, according to a report from Bloomberg.
Later, CNBC reported that a source close to Yahoo said the company had no interest in an agreement with AOL.
Shares of AOL closed 5.3% to $ 14.72 while Yahoo has moved up 0.3 percent, to $ $14,48.
Yahoo and AOL declined to comment.
Reference analyst Clay Moran said that AOL's investors were probably disappointed that Yahoo was not interested in an agreement.
This is not the first time that reports of a grounding of AOL-Yahoo surfaced. Last year, AOL, once famous for its email services and dial-up tapped Bank of America to explore strategic options, including a possible merger with Yahoo, people familiar with the matter told Reuters at the time.
Yahoo has been embroiled in its own problems, causing the dismissal of its Chief Executive Carol Bartz earlier this week.
(Reporting by Jennifer Saba and Alexei Oreskovic; Editing by Tim Dobbyn)
View the original article here
0 comments:
Post a Comment