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Yahoo continues to hold merger talks with Time Warner, discussing a deal that would fold AOL into Yahoo and give Time Warner a minority stake in the new company. Another morning, another round of share-price stimulating rumormongering in the Yahoo saga. If the deal sounds familiar, that's because Yahoo sources first leaked the idea back in April. You're hearing it again because Yahoo shares dropped into the teens two days ago. We don't expect Yahoo-AOL to happen, if only because Microsoft is also said to be interested in AOL and its got a lot more cash and pride on the line. In other Yahoo rumormongering: Reporter's reporter Kara Swisher reports that Yahoo is prepared to avoid a nasty proxy fight with Carl Icahn by giving him two seats on its board. Problem is Ican wants four. Swisher thinks the two will come to an agreement because neither side wants a media-friendly, share-crumbling fight at the company's annual media. Because its not at all too late for such concerns.