engine - 11:08 am on Mar 5, 2008 (gmt 0)

Yahoo Inc. and Time Warner Inc. have stepped up talks over creating an alternative to Microsoft Corp.'s unsolicited offer for Yahoo, people familiar with the matter said. The talks center on a deal that would fold Time Warner's AOL Internet unit into Yahoo, these people said, though they still consider a Yahoo purchase by Microsoft as the most likely outcome.

Yahoo and Time Warner Step Up Talks [online.wsj.com]