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OT Icahn calls possible AOL and Google deal 'disastrous'
Icahn calls possible AOL and Google deal 'disastrous'
By Danielle George Dec 20, 2005, 10:29 GMT
<http://tech.monstersandcritics.com/news/article_1070266.php/Icahn_calls_possible_AOL_and_Google_deal_disastrous>
(AHN) - Billionaire Time Warner shareholder Carl Icahn calls the
possible AOL and Google deal "disastrous" and "short-sighted."
If Internet unit America Online agrees to an exclusive deal with search
giant Google, its shareholders will hold the board responsible, warns
Icahn.
The Wall Street Journal and others reported last week that Time Warner
and Google have secretly reached a tentative agreement whereby Google
would pay $1 billion for a 5 percent stake in AOL, giving AOL a
valuation of $20 billion. Icahn, who directly and indirectly controls 3
percent of Time Warner shares, has been organizing a proxy battle for
control of the company and wants to split AOL off, according to CNET
News.
"Like all shareholders, I am not opposed to Time Warner entering into
an AOL transaction that creates long-term value. However, I am deeply
concerned that the Time Warner board may be on the verge of making a
disastrous decision concerning an agreement with Google if this
agreement would make it more difficult in any way or effectively
preclude a merger or other type of transaction with companies such as
(InterActiveCorp), eBay, Yahoo or Microsoft." Icahn wrote in an open
letter to the Time Warner board of directors.
"The real risk for Time Warner shareholders is that a Google joint
venture may be short-sighted in nature and may preclude any
consideration of a broader set of alternatives that would better
maximize value and ensure a bright future for AOL."
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