AOL backs out of takeover bid for Sweden's TradeDoubler

Internet giant AOL has withdrawn its cash offer for Swedish online marketing specialist TradeDoubler after failing to acquire enough shares by the bid deadline, an Associated Press report said.

The Associated Press report said AOL in January offered to buy TradeDoubler in a cash deal that valued the company at around $900 million.

While TradeDoubler's board of directors recommended that shareholders accept the bid, AOL said it had acquired only 'a limited number of shares' by Wednesday's deadline, falling short of the 90% required to determine ownership, the report said.

The report said TradeDoubler's largest shareholder, fund manager Alecta, was among those that rejected the offer, saying it was too low. Alecta owns 10.01% of TradeDoubler.

TradeDoubler's board said the company still had a 'very exciting and attractive future ahead as an independent company.'

AOL has said TradeDoubler would help it improve its Internet advertising presence in Europe and become a bigger player on the continent, the report further said.