News 

The Time Warner-owned company is prepared to hand over the less lucrative Internet access side of the business, as long as the buyer continues to direct users to the AOL portal website.

According to The Guardian, BSkyB, Orange and Carphone Warehouse are the only remaining bidders for the business - BT having pulled out - but may baulk at paying the £560 million asking price if it means they cannot direct their new customers to their own online offerings, where the real money is to be made through advertising and ecommerce links, phone services and, in the case of Sky, satellite TV subscriptions.

Time Warner announces its quarterly financial results tomorrow, 2 August, and is expected to issue an update on its plans, including a progress report on the sale of AOL's French and German operations.