Icahn Turns Up Heat on Time Warner Management

Dec 13, 2005  •  Post A Comment

The escalating war between financier Carl Icahn and the management of Time Warner took another turn Tuesday, when Mr. Icahn, in a letter to shareholders, demanded to see the minutes of any board meetings in which the directors discussed whether to break up the media giant.

The request came on the heels of an op-ed piece published Sunday in The Washington Post by former Chairman and board member Steve Case, in which Mr. Case said a board member suggested breaking up the company into four separate units to unlock value in the company.

“Investors need to understand what level of debate actually occurred at the board, what type of analysis was conducted and who was responsible for this analysis, all of which go to the heart of shareholder accountability,” Mr. Icahn said in his letter.

The letter is the latest in a string of moves by Mr. Icahn to effect change at Time Warner, which he claims is lagging due to decisions by management that have had a negative impact on the company’s share price.

Mr. Icahn has been advocating that Time Warner boost its stock-repurchase program and has pushed for the company to completely spin off Time Warner Cable, rejecting the media giant’s plan to offer just 16 percent of the cable operation to the public. Mr. Icahn has also sought representation on the Time Warner board.