AOL faces resistance in Swedish deal

AOL, the Internet unit of Time Warner Inc., said Monday that it had agreed to buy Swedish online marketing firm TradeDoubler for about $900 million to enhance its advertising capabilities in Europe.

But the cash deal, which was recommended by the TradeDoubler board, ran into trouble as a major shareholder said it would vote against the transaction and other investors signaled that they would need a sweetener before approving it.

The deal is the first major strategic move for AOL under Chief Executive Randy Falco.

It follows AOL’s sale of its European Internet access businesses as the company shifts to an advertising-based model from one reliant on subscribers.

AOL offered 215 Swedish kronor a share for TradeDoubler -- an 8.6% premium to Friday’s close and 20% higher than the stock’s three-month moving average.

Investors representing about 20% of TradeDoubler’s shares, including the company’s largest holder, Arctic Ventures, have said they would accept the offer.

But Swedish pension group Alecta, which said it owned 10% of TradeDoubler, rejected the bid, saying it undervalued the company.

AOL said the deal’s closing was conditional on 90% of TradeDoubler shares accepting the offer.