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Apple shares fall on Universal Music talks

Shares of Apple fell more than 8 percent, or US$1.17, to $13.20 Friday — the biggest one-day percentage drop for the stock since last July — on concern that its talks with Vivendi to buy the Universal Music unit could yield a deal that would “deplete Apple’s cash trove and push it into an uncertain and troubled market,” reports Reuters. “While it can be argued that Apple could make some incremental revenue from the online sale of music, the company would not need to own a music company in order to do so,” Merrill Lynch analyst Michael Hillmeyer wrote in a note to clients. “In fact, there do not appear to be any synergies between a music company and a PC company, even one as innovative as Apple.” Earlier in the day, the stock dropped to a 52-week low of $12.93.

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