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Details of Legend, AOL deal to be revealed

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SAR-listed Legend Holdings is set to unveil details of a joint venture with Internet giant America Online (AOL) in Beijing today.

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The venture is expected to include a contribution of US$100 million from each side to develop an interactive content portal for the Chinese market.

Legend's move comes after the HK$300 million spin-off on the main board of its foreign brand distribution arm, Digital China Holdings, earlier this month.

Analysts expect the computer manufacturer - 57 per cent controlled by state-owned Legend Group - to leverage its United States partner's expertise to help reshape its Internet business, fm365.com.

Singapore-based Vickers Ballas said in a report that the Internet unit could 'leverage AOL's wide range of Internet products and services, as well as technology to differentiate itself from other domestic portals and win market share'.

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In a recent report, Europe-based investment bank UBS Warburg predicted Legend would use the venture to help turn around its loss-making portal business.

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