AOL Time Warner shares were selling at $32.40 (£21.98) in New York as investors began panic selling yesterday because AOL Europe's market value has fallen substantially in recent months to between $2bn-$5bn (£1.4bn-£3.4bn).
The reason for the panic was that AOL and Bertelsmann signed an agreement in March 2000 as part of their global alliance. Under the agreement, Bertelsmann could force AOL to buy up to 80% of its 49.5% stake in the ISP for as much as $6.8bn (£4.6bn).
However, it is not all bad news for the world's biggest media company, as AOL Europe is growing three times faster than AOL in the US. In the quarter ending June 30, AOL Europe's subscriber base grew at about 60%.
AOL shares have taken a pounding this year, sliding 50% since hitting a peak of $58.50 (£39.70) in May.
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