Time Warner Says Panel Has Cleared Aboodi

Time Warner Inc. Chairman Gerald M. Levin said Thursday that a committee of outside directors has cleared the company’s leading financial adviser, Oded Aboodi, to continue his relationship with the firm in the wake of an insider-trading case that was settled last week with Aboodi’s agreement to pay fines of $931,000.

Aboodi neither admitted nor denied allegations by the Securities and Exchange Commission that two family partnerships sold Time Warner common stock at a time when Aboodi knew that Time Warner management had--in May, 1991--approved controversial stock rights.

Public disclosure of the plan triggered a 10% decline in Time Warner’s stock price.

Aboodi was the late Time Warner Chairman Steven J. Ross’ closest financial adviser, and he developed a strong friendship with Levin after negotiating the Time Warner merger in 1989.

On Thursday, at a well-attended annual shareholders meeting on a Warner Bros. sound stage in Burbank, Levin gave the 52-year-old adviser a ringing endorsement and said the committee’s action “closes the matter.”

Levin also fielded questions about Seagram Co.’s 14.9% stake in Time Warner. He said no representatives have been invited to join the board because “they haven’t asked.” However, Levin noted that Seagram sent three representatives to the shareholders meeting.