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EC REFUTES NEWS REPORTS

That’s Their Story And They’re Stickin’ To It
The European Commission Thursday denied widespread news reports stating that it was prepared to approve the AOL-TW merger and reject the related WMG-EMI joint venture.

The EC also said that AOL and Time Warner can make last-minute concessions to save their $120 billion merger despite the official deadline to offer new remedies having already passed.

The spokesman said that AOL and Time Warner can still make a last-ditch effort to provide remedies addressing European Union concerns of AOLTW dominance. The remedies would have to satisfy convincingly all problem areas determined by the EU because its advisory panel does not have time to conduct market tests before the commission's Oct. 24 ruling.

A Time Warner spokesman said that merger discussions with EU were "nearing an end" but declined to comment on what further remedies will be proposed.

Relying on an unnamed sources, Reuters reported Thursday that the commission plans to approve the AOL-TW deal but deny the merger of WMG-EMI. A decision on WEMI is due Oct. 18.

An EU spokesman said the report was not based on any EU source, adding that the mixed outcome of approval for AOLTW and rejection for WEMI was "not the reality of the situation right now." He refused to comment further.

The EC has analyzed the Warner/EMI merger strictly, finding that it could let those companies dominate online music distribution, control retail pricing of CDs and collectively dominate the music publishing market.

The companies have reportedly offered to significantly alter their concession plans, including perhaps selling Virgin Records and a piece of Warner/Chappell, to help get the music merger approved, source said (hitsdailydouble.com 9/27).