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Company Report: E.piphany Walloped, Talbots Soars and State Street Racks Up Big Gains

 

Yahoo!(YHOO Quote) and eBay(EBAY Quote) are negotiating a possible pact or merger, CNBC reported, citing people familiar with the matter.

Meanwhile, the Financial Times cited people familiar with the situation in reporting that the talks between the two companies, which it said were preliminary in nature, ended last week.

According to CNBC, there is a 50-50 chance for a pact between the two Internet giants, with a "significantly" smaller chance that Yahoo! would wholly acquire eBay. CNBC reported that sources said negotiations heated up after America Online (AOL Quote) said it would buy Time Warner(TWX Quote), but that no definitive agreement has been set. Yahoo! fell 10 1/4, or 6.1%, to 158 1/2, while eBay dropped 21 1/8, or 10%, to 189 7/8. America Online was down 1/2 to 61.


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