• Financial Times, Tuesday, December 13, 2005 11:18 AM

Patrick McGurn, special counsel at Institutional Shareholder Services, an advisory firm, said he is "95 percent certain" Time Warner will face a proxy battle for control of its board. According to McGurn, the New York-based media conglom has virtually no chance of settling with financier Carl Icahn before its May shareholder meeting: "There is not enough common ground between them. Right now, it seems this will go to a vote."

Icahn currently holds about three percent of Time Warner's outstanding shares. His contention that the company needs to break apart, unleashing the value of each of its constituent parts, is shared by some other investors, but it's too early to say if Icahn can rally enough support to control the 14-member board. Dick Parsons, president and CEO of Time Warner, has met with Icahn, but his team is confident the company's present course, which includes a modest stock buyback, is the best way to go.

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