Investor Carl Icahn recommends breakup of Time Warner

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Investor Carl Icahn recommends breakup of Time Warner

The Boston Globe reports this morning that investor Carl Icahn, one of Time Warner’s largest shareholders, has formally recommended that the company split itself into four operating units. A 342-page report prepared by Icahn’s bankers details the split.

The report recommends forming separate companies for America Online, Time Warner Cable, the publishing unit, and film and TV networks, as well as buying back $20 billion in stock. The plan, commissioned by Icahn to rally support in his fight for control of Time Warner, is designed to increase the company’s stock price by as much as 43 percent from Monday’s close of $18.57.

Icahn is widely perceived as a competitor with Time Warner chairman Richard Parsons for the continued leadership of that company.

(Bloomberg News via The Boston Globe)