Time Warner Shares Jump 6% on Bond Sale

Time Warner Inc. shares jumped 6% after the media and entertainment company sold $750 million in debt it will use to buy back bonds that could have been converted to stock. The shares closed up $2.375 to $40.25 on trading of 2 million shares, more than double the three-month daily average of 971,400 shares. New York-based Time Warner raised $750 million by selling $916 million face amount of bonds at a discount. It was one of the biggest bond sales so far this year. Time Warner said it plans to use the proceeds, along with funds from a December sale of equities, to redeem $1.2 billion in debentures that could have been converted to 25 million shares of stock. Those added shares could have lowered Time Warner’s share price, making the pending acquisition of Turner Broadcasting System Inc. more expensive for Time Warner.