US: Time Warner takes action to stop Murdoch pursuit

Time Warner began moving to prevent an acquisition by Rupert Murdoch-owned Twenty First Century Fox, reports say, as Time Warner revised its bylaws.

Time Warner reported removed a provision in its bylaws that allow shareholders to call for special meetings; by banning such acts, reports say, Time Warner is preventing a method shareholders could potentially use to pressure the company to strike a takeover deal.

Time Warner is said to have rejected Murdoch’s $75 billion acquisition bid earlier this month, and reports say Fox will likely continue to pursue a deal.

To combat a takeover, Time Warner’s board of directors reportedly unanimously approved of the revision to the bylaws. The move delays any chance for shareholders to force a sale until next June during the company’s annual shareholder meeting, a source said. Until then, say reports, the company will likely focus on convincing shareholders that the company is better suited without an acquisition deal.

Full content: Bloomberg

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