Of course they deny it (Score 1)

Companies involved in M&A always decline to confirm or reject market rumours. It's probably bad enough for the parties involved that there has been a leak - this gives other companies a chance to try and block the deal, or come up with a counteroffer.

The CNET report says "Sources familiar with the situation emphatically insisted the two companies are not near an acquisition deal, nor have they discussed one.".

If it's not an acquisition, AOL are probably about to hand over a large contract for RHAT - which can only be good for the share price.