Rumor Time

Time Warner is stirring up more drama on Wall Street than in Hollywood these days. After a feverish afternoon of takeover speculation on May 3, the entertainment company's stock jumped 3.875, to 40. Among the rumored buyers: Seagram, which already owns 14.2% of Time Warner's shares. People close to Seagram President Edgar Bronfman Jr. dismiss the takeover talk. But Seagram is no longer the only name being floated: Sources say cable titan John Malone is mulling a bid, perhaps in concert with Barry Diller and music mogul David Geffen. If that's not enough, add Bell South, Bell Atlantic, and US West to the list. US West already owns 25% of the Warner Bros. and could play the white knight.

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