Time Warner Is Reviewing Icahn Proposals
Time Warner Inc. is considering strategies to increase value for shareholders, including those demanded by investor Carl Icahn, Chief Executive Richard Parsons told employees.
A group of investors led by Icahn has built a stake of 2.6% in New York-based Time Warner stock and options and is asking the company to buy back $20 billion of shares and spin off its cable-systems unit to help increase the stock.
“We have in place a process through which we are carefully reviewing a range of options to increase the value of our company, including those proposed by Mr. Icahn and his group,” Parsons wrote in an e-mail.
The e-mail, which was confirmed Wednesday by a Time Warner spokesman, reflects the CEO’s efforts to minimize distractions that Icahn’s campaign may be causing at Time Warner.
Parsons urged employees to stay focused on running their businesses, which include CNN and Warner Bros. film studio.
Shares of Time Warner fell 6 cents Wednesday to $17.92.
Icahn on Monday said he planned to propose nominations to Time Warner’s board, increasing pressure on Parsons to consider the investor’s demands.
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