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DELAWARE CHANCERY Court Chancellor William Allen Friday urged feuding partners Time Warner Inc. and U S West to settle their legal dispute before he rules in early June. Allen made the remarks at the end of an eight-day trial on a lawsuit brought by U S West, a Colorado-based regional telephone company, to block Time Warner’s planned $7.5 billion acquisition of Turner Broadcasting System Inc. Allen said his court was unable to resolve the overall business dispute between the companies and urged Time Warner and U S West to work on striking an out-of-court settlement. “The facts are unclear,” the judge said. He said any ruling he made would likely be open to a strong appeal.