According to the Wall Street Journal, TERRA NETWORKS, Internet subsidiary of the Spanish group TELEFONICA, has proposed taking over the Internet site LYCOS through an exchange of shares for a value of $10 bn. The parity agreed on would be 1.5 TERRA NETWORKS shares for each LYCOS share, valuing the American firm at $91 a share. Should the transaction succeed, it would give rise to an Internet giant with a stock market capitalisation of some 22 bn euro.