Deal in AOL Case Said to Be Near

Nothing, it seems, is settled just yet between Time Warner Inc. and federal regulators who have been investigating accounting practices at the company’s America Online division.

The Washington Post reported Tuesday that Time Warner and the Securities and Exchange Commission were nearing a settlement in which the world’s largest media company would pay the government $750 million. Under the deal, Time Warner would not admit any wrongdoing.

But two sources close to the negotiations said that although talks have been continuing, the dollar figure cited by the newspaper was too high.

This month, in reporting its third-quarter earnings, Time Warner said it had set aside a legal reserve of $500 million to cover the costs of resolving the accounting investigation.

At the time, Time Warner Chief Executive Richard D. Parsons told analysts that the government probes had “progressed significantly” and that he was “moving this company forward.”

The SEC and the Justice Department are investigating whether AOL inflated revenue and subscriber numbers in previous years.

Neither the SEC nor Time Warner would comment Tuesday on the status of their talks.

Analysts said that a deal with the SEC would make it easier for Time Warner to bid for Adelphia Communications Corp., the troubled cable firm now up for grabs. The probe has restricted Time Warner’s ability to use its securities in any acquisition.

With stock at its disposal, Time Warner would have more financial flexibility in its proposed joint bid for Adelphia with Comcast Corp. Adelphia could fetch $17 billion or more.

Time Warner shares rose 48 cents to a 10-month high of $17.94 on the New York Stock Exchange.