• The New York Times, Friday, August 18, 2006 12:45 PM

Billionaire financier Carl Icahn is not finished with Time Warner. After backing away from an attempt to break the media conglomerate up, Icahn is now ready to increase his stake--and influence--in the company through a new fund. In a letter to investors in his fund, Icahn says he will raise a "special purpose vehicle" for the sole purpose of investing in Time Warner. Because Time Warner is already his fund's largest investment, making up about 27 percent of his fund, he said in the letter that the only way he felt comfortable increasing his stake in the company was through a separate fund. "Time Warner's stock has proven frustrating, but we continue to hold the stock and feel, as strongly as ever, that a significant gap exists between Time Warner's intrinsic asset value and its share price. Every once in a while, markets act irrationally, providing the patient investor with great opportunities for reward with little risk. RJR Nabisco was a good example of this ... I made many times my investment. Today, I believe Time Warner represents such a situation."

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