AOL Time Warner Says Not In Talks With Red Hat

AOL Time Warner Inc. Red Hat Inc.

A Washington Post article over the weekend reported that AOL Time Warner was in "fluid" talks to buy Red Hat, citing sources familiar with the matter.

"The Washington Post story is incorrect," spokesman Andrew Weinstein told Reuters. "AOL is not in negotiations with Red Hat."

Several Wall Street analysts had also said Tuesday that a merger was unlikely, but said there were several opportunities for partnerships between AOL and Red Hat, which distributes alternative operating system Linux that is an "open source" platform which anyone can change to suit their needs -- unlike software from rival Microsoft.

Shares of Red Hat returned earlier gains and were last down 14 cents to $8.27 in late morning trade. AOL Time Warner shares were last off 64 cents to $28.94.

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