Icahn Could Make 10% TW Play

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In a move to get greater leverage at Time Warner, hedge fund financier Carl Icahn may make a tender offer for up to 10% of Time Warner’s outstanding stock, according to Bloomberg News.

The wire service says that Icahn is prepared to put up as much as $1.5 billion of the $6 billion that may be needed to buy the shares, and will look for support from other investors.

Icahn is stalking Time Warner, trying to pressure the company into loading up on debt and buying back $20 billion of its own shares.

But he and his alliance of institutional investors and short-term hedge funds don’t actually control much stock, just 2.6%, and an undisclosed amount of that comes from options on Time Warner stock, which cost far, far less than actually buying shares.