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Investment would let AOL propose Amazon buyout

SHARE Investment would let AOL propose Amazon buyout

SEATTLE (AP) — AOL Time Warner Inc. would be allowed to propose a takeover bid for Amazon.com Inc.— as long as it did so quietly — under the terms of a $100 million investment AOL made in Amazon on Monday.

According to a Monday filing by Amazon.com with the Securities and Exchange Commission, AOL could propose a buyout or other kind of "extraordinary transaction" of the online retailer.

Amazon.com spokeswoman Patty Smith would not comment beyond to say that the company entered into a "modest and appropriate standstill agreement" with AOL. A standstill agreement typically restrains companies from buying shares in other companies for a specified period of time.