Icahn Targets 10% of Time Warner

31 August 2005

Interventionist shareholder Carl Icahn is reported to be mulling a bid for 10% of global media giant Time Warner.

Icahn and his hedge fund associates, who currently have a 2.6% stake in the company worth around $2.2 billion (€1.8bn; £1.23bn), are turning up the heat to force TW to spin off its entire cable TV unit and to buy back £20bn worth of stock. They have become increasingly frustrated by this year's 5.9% drop in TW's share values.

So far the company, led by chairman/ceo Richard Parsons, has resisted Icahn and has pledged to stick to its own strategy of a 15% cable spin-off and a $5bn buy-back.

The two sides met for a "frank and open exchange of views" two weeks ago but have so far refused to comment on this latest speculation.

Data sourced from multichannel.com; additional content by WARC staff