Icahn Comments on Time Warner
August 15 2005 - 10:09AM
PR Newswire (US)
NEW YORK, Aug. 15 /PRNewswire/ -- Carl Icahn announced today that
Icahn Partners and Icahn Partners Master Fund, Franklin Mutual
Advisors, JANA Partners and S.A.C. Capital Advisors (collectively,
the "Investors"), hold common stock and options which represent, in
the aggregate, over 120 million shares of Time Warner Inc. ("TWX")
which when fully exercised would have a market value in excess of
$2.2 billion based on the closing price of TWX common stock on
August 12, 2005. Mr. Icahn stated that each Investor has notified
TWX pursuant to the requirements of the Hart-Scott-Rodino Antitrust
Improvements Act of 1976 (the "HSR Act") of its intention to
acquire in excess of $500 million of TWX common stock and each
Investor intends to exercise options which it holds on TWX common
stock upon the termination of the applicable waiting period under
the HSR Act. Prior to the notification, Mr. Icahn contacted Richard
Parsons, Chief Executive Officer of TWX, to inform him of the
coming filing and they agreed to meet this week to discuss the
Investors views for actions to enhance TWX shareholder value. Mr.
Icahn stated that the Investors believe that while TWX management
has done a commendable job managing each of their various
businesses and, although the company recently has announced that it
is undertaking certain measures to enhance shareholder value, it
has not moved quickly enough and it has not proposed measures which
would enhance values to the degree necessary to realize the
inherent value of TWX's well positioned and unique assets. Mr.
Icahn indicated that the Investor's believe that a separation of
the cable business from the content businesses combined with the
immediate repurchase of at least $20 billion of common shares would
eliminate the discount between TWX's share price and the inherent
value of its unique assets. The Investors intend to discuss these
views with other large holders of TWX common stock. Mr. Icahn
concluded by stating that the Investors have entered into an
agreement pursuant to which they have agreed not to sell TWX equity
securities until the earlier of February 2007 and the date of the
next annual meeting of TWX shareholders except with Mr. Icahn's
consent. Mr. Icahn indicated that the agreement also provides that
in the event he determines to nominate a candidate or candidates
for the Board of Directors of TWX, the Investors will support the
election of such nominees. DATASOURCE: Carl Icahn CONTACT: Susan
Gordon, +1-212-702-4309, for Carl Icahn
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