Corporate raider Carl Icahn said Thursday that a Wednesday meeting with Time Warner Inc. chairman and CEO Richard Parsons was productive, adding that the two plan to meet again.
Icahn -- known for accumulating stakes in public companies, then pushing for change -- revealed Tuesday that he and three other investors had amassed a $2.2 billion stake in Time Warner, or about 2.6% of its outstanding stock. Icahn said he would urge Time Warner to divest its cable operations completely and boost a share-repurchase program from $5 billion to $20 billion.
Time Warner had announced plans to spin off a 15% stake in Time Warner Cable next year, after the cable unit completes its $17.6 billion merger with Adelphia Communications Corp.
“At the end of the meeting, we both observed that we had, at the very least, one thing in common: We both believed Time Warner was meaningfully undervalued and we both wanted very much to rectify this situation,” Icahn said in a prepared statement. “We agreed to communicate again shortly.”
Time Warner spokeswoman Mia Carbonell said the talks were cordial, but no changes were forthcoming.
“It was a frank and open exchange of views,” Carbonell said. “Dick reinforced to Carl Icahn that the board and management are committed to moving as aggressively as appropriate on the current course the company is on to create and deliver long-term value for shareholders.”
Time Warner shares were down 10 cents each to $18.20 per share in 4 p.m. trading Thursday.