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AOL has hired external advisors to consider a bid for its rival internet portal Yahoo, according to reports.

They’re presenting the feasability of a bid to AOL officials, according to reports which cite sources close to the meetings.

However, AOL has yet to make a formal proposal to Yahoo, while the advisors are also said to be presenting alternative options to a Yahoo takeover.

Reports of a potential tie-up between AOL and Yahoo surfaced last month after it emerged that private equity firm Silver Lake Partners had approached AOL about launching a joint takeover bid (nma.co.uk 15 October 2010).

AOL has yet to make an official statement on the reports but CEO Tim Armstrong is reported to have said both companies could benefit from a partnership.

Yahoo CEO Carol Bartz refused to comment on the speculation at the company’s most recent earnings call last month.

“I can’t comment on rumours and I can’t talk about hypotheticals,” she said. “I’m not allowed to, nor should I as CEO.” (nma.co.uk 20 October 2010)


Published 8 November, 2010 by NMA Staff

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