Icahn Gives Time Warner a Lift

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Time Warner Inc. stock rose as much 4.5% (79 cents) Tuesday after reports said corporate raider Carl Icahn could make a tender offer for as much as 10% of the company.

Time Warner shares rose as high as $18.25 Aug. 30, before settling down to $17.89 (up 43 cents) at 4 p.m.

Icahn disclosed earlier this month that he and three other hedge funds own $2 billion worth of Time Warner stock (2.6% of outstanding shares). He’s been pressing the media giant to spend more buying back stock -- $20 billion, up from a current $5-billion program -- and to sell off its cable operations.

He met with Time Warner chairman Richard Parsons on Aug.17, a one-hour meeting the two later characterized as cordial.

By making the tender offer for a bigger chunk of Time Warner stock, Icahn could increase the pressure on management to give the corporate raider at least some of what he wants.

According to a Bloomberg News report, Icahn is willing to put up about $1.5 billion of the $6 billion that would be needed to acquire a 10% stake.

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