ACQUISITION REPORTS HURT AOL SHARES.Byline: Seth Schiesel The New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Times Shares of America Online See AOL. Inc. and CompuServe Inc. fell sharply in heavy trading Monday as both companies declined to confirm reports that America Online, the country's largest on-line service provider, was negotiating to buy CompuServe, its biggest rival. Shares of America Online fell $4.125, to $44.25, on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. , while those of CompuServe closed at $12, down $1.625, in Nasdaq trading. The prospect of such a deal has divided analysts and investors between those who believe CompuServe's network resources are too valuable for America Online to pass up and those who worry about the impact of an acquisition on America Online's short-term earnings. CompuServe, the nation's second-largest on-line provider, which is controlled by H&R Block Co., said last week that it was in talks to be acquired. But the identity of the suitor SUITOR. One who is a party to a suit or action in court. One who is a party to an action. In its ancient sense, suitor meant one Who was bound to attend the county court, also, one who formed part of the secta. (q.v.) has not been disclosed. Speculation that America Online was the bidder, previously fueled by a report in The Washington Post, was revived re·vive v. re·vived, re·viv·ing, re·vives v.tr. 1. To bring back to life or consciousness; resuscitate. 2. To impart new health, vigor, or spirit to. 3. Monday when The Wall Street Journal, citing unnamed sources, reported that the two companies were hammering out a $1.2 billion deal. While most analysts agreed that H&R Block, based in Kansas City Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). , Mo., should sell its 80 percent stake in CompuServe to focus on its core business of retail tax preparation, analysts and investors are sharply divided on whether acquiring CompuServe would make sense for America Online. Also, news Monday that Microsoft Corp. was planning to spend $425 million to buy WebTV Networks Inc. may have depressed America Online's stock amid fears that the company's customer base could soon come under renewed attack. |
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