AOL, Time Warner Shareholders OK Merger

America Online Inc. and Time Warner Inc. shareholders voted overwhelmingly in favor of a their proposed $123-billion merger, bringing them a step closer to forming a digital media and entertainment powerhouse. The merger still requires the approval of U.S. and European regulators. Steve Case, the Internet services and media giant’s chairman and chief executive, told shareholders at AOL’s meeting in Vienna, Va., that he was pleased with how the regulatory reviews were proceeding and that the deal was on track to close in the autumn. Later in the day, Consumers Union, a leading U.S. consumer watchdog, said it will unveil on Monday a legal challenge to the combined ownership links between AT&T; Corp. and the proposed AOL-Time Warner combination. Together, the companies would control more than half of the cable lines in the United States, according to Consumers Union. Further, it would control access to more than half of the Internet subscribers who connect through traditional modems and three-fourths of the high-speed Internet customers, the group said. Dulles, Va.-based AOL’s shares closed off $3 at $53.50, while New York-based Time Warner fell 4.06 to close at $77.56, both on the New York Stock Exchange.