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EU said to OK Time-AOL
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October 9, 2000: 2:43 p.m. ET
Source: Europe to approve $130B deal Wednesday with a few conditions
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LONDON (CNNfn) - European Union officials are expected to approve America Online Inc.'s proposed $130 billion purchase of Time Warner Inc. with certain conditions when the regulatory body convenes again Wednesday, a source at the EU told CNNfn Monday.
The exact details of the conditions could not immediately be learned, but industry analysts do not expect any significant objections to arise. If the merger passes regulatory muster with the EU, a 15-nation body that rules on corporate antitrust issues, it would represent the first significant hurdle cleared by AOL and Time Warner, which are bidding to create an unparalleled digital media powerhouse.
The EU denied Monday it is discriminating against U.S. mergers
The companies' case with the EU was significantly bolstered last week when Time Warner (TWX: Research, Estimates), the parent company of CNNfn, and music publisher EMI Group PLC pulled the plug on a separate plan to form a $20 billion music joint venture, amid expectations the commission would reject that proposal.
 Shares of both companies have risen in recent days in anticipation of the merger's conclusion drawing nearer. But AOL (AOL: Research, Estimates) shares shed $2.83 to $56.30 in late morning trading Monday while Time Warner lost $3.76 to $83.30, amid new worries that Senate Judiciary Chairman Orrin Hatch, R-Utah, was concerned AT&T Corp.'s 25 percent stake in Time Warner's cable and entertainment business might stymie competition.
Amelia Torres, a spokeswoman for the commission, confirmed Monday that a ruling on AOL's takeover of Time Warner is on Wednesday's agenda for the commission, the EU's executive branch.
Even if the merger of the two U.S. companies gets approval from the commission, the two firms must still persuade regulators in Washington to give the deal the go-ahead.
The Federal Communication Commission and the Federal Trade Commission are expected to make their rulings later this month. 
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