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Icahn May Be Eyeing Time Warner Stock Purchase

Aug 31, 2005  •  Post A Comment

In a move that could help force change at media giant Time Warner, billionaire investor Carl Icahn may be preparing to make a tender offer to buy up to 10 percent of Time Warner’s outstanding shares.

According to several reports, Mr. Icahn has been holding talks with a number of unidentified investors about joining a shareholder team formed earlier this month by Mr. Icahn to push the company to take several steps he thinks would boost shareholder value, including offering to the public more than Time Warner’s current plan of 15 percent of Time Warner Cable.

The unnamed shareholders could help finance a transaction said to be valued at around $8 billion for a 10 percent slice of the media giant. Mr. Icahn’s current investment group–which includes two of Mr. Icahn’s own funds along with Jana Partners, SAC Capital Advisors and Franklin Mutual Advisors–now owns slightly less than 3 percent of Time Warner’s outstanding shares, valued at $2.2 billion.

Mr. Icahn met in recent weeks with Time Warner Chairman and CEO Richard Parsons to discuss steps the company could take to jump-start its languishing stock price. While Mr. Icahn described the conversation as “productive,” little has emerged from those talks.