Time Warner, Cable Unit Agree on Separation, Dividend |
| Bloomberg - May 21, 2008 |
Time Warner Inc., under pressure from investors to boost its stock price, will get a $9.25 billion one-time cash dividend from its Time Warner Cable Inc. unit before spinning off the business to shareholders.
Time Warner, which owns 84 percent of the unit, advanced 3.4 percent in early trading after the world's largest media company said it would receive $10.27 per Time Warner Cable share. The cable company plans to borrow $10.9 billion to fund the entire payout.
``The dividend is larger than expected,'' said Chris Marangi, a fund manager at Gamco Investors Inc. in Rye, New York, which owns 10.9 million Time Warner shares among $30 billion in assets. He said he estimated a dividend of $5 to $6 a share and anticipates Time Warner will use the proceeds for a stock buyback.
Read Full Article from Bloomberg
- Posted: 2008-05-21 08:46:13
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