Fearing Sale of Seagram’s Stake, Time Warner Speeds Reforms

Time Warner Inc. Friday named an investment banker to help lead its restructuring strategy as Chairman Gerald Levin’s campaign to cut debts and reshuffle businesses appears to be taking on added urgency.

Fears that Seagram Co. may sell its 15% block of Time Warner stock to a hostile outsider has fueled talk that Levin will be forced to hasten the 18-month agenda for debt reduction and restructuring set out in February.

Seagram, the liquor giant that recently agreed to buy 80% of MCA Inc. for $5.7 billion, said last week it is now considering selling its Time Warner stock.

New York-based Time Warner said it has named Melinda Mount executive director of corporate strategy and development, a new post in which she will help plan acquisitions and divestitures and work on corporate financing and strategy.

Mount spent the past eight years at Morgan Stanley Group Inc., where she focused mainly on mergers and acquisitions, strategy and corporate restructurings, Time Warner said.

According to industry sources, Time Warner is in talks with regional phone company US West Inc. and two Japanese companies that own nearly 40% of Time Warner’s entertainment unit, which holds its cable systems, HBO and Warner Bros. movie studio operations.