America Online (NYSE: AOL) rose 2 15/16 to 4 15/16 Thursday following reports of an upgrade to strong buy from buy at ING Barings and news that Time Warner and EMI Group ended plans to merge. The withdrawal of the proposed EMI merger could make it easier for AOL’s planned merger with Time Warner to gain U.S. and European Commission (EC) clearance.
EMI and Time Warner said they withdrew their merger application after talks with the EC fell through. The companies said they will continue to talk with each other and regulators in an attempt to find an agreement acceptable to all involved.
AOL and Time Warner are trying to win U.S. and European approval to create the world’s largest media company. The deal was first announced in January.