The board of Time Warner Inc., which last week fended off a $73 billion acquisition offer from 21st Century Fox Inc., reasserted the firm stand against the unwanted takeover bid by changing its bylaws, disallowing shareholders to call special meetings.
The companys board has made the decision to block the rule that provided Time Warner Inc.s shareholders with the opportunity to request meetings and votes, stepping up its positions against Fox. Under the rules before the change was made, investors that held no less than 15% of the companys shares would be able to call for a meeting as soon as February, people with knowledge of the matter said, cited by Bloomberg.
The move would provide more time for the company to prove to its employees and to its shareholders that it is better off alone than with Fox, Time Warner CEO Jeff Bewkes said last week.
Ms. Julie Henderson, who is a spokeswoman of 21st Century Fox Inc. refused to make any comments on Time Warner Inc.s bylaws change. Mr. Keith Cocozza, who is a spokesman of Time Warner, also declined to comment on the situation.
An eventual merger between Time Warner Inc. and Mr. Murdochs 21st Century Fox Inc. would create a company with revenues estimated at more than $37 billion each year in the U.S. and Canada, Reuters reported. In addition, the Fox revenues generated from the emerging markets in Latin America and Asia/Pacific would also be nearly doubled if the deal is finalized.
Time Warners shares have gained more than 20% since last weeks offer was declined, while Foxs share price has lost more than 6%.
Time Warner Inc. was 0.15% up to close at 87.36 dollars per share yesterday, marking a one-year change of +47.53%. According to information published on CNN Money, the 23 analysts offering 12-month price forecasts for Time Warner Inc. have a median target of 79.00, with a high estimate of 100.00 and a low estimate of 67.00. The median estimate represents a -9.57% decrease from the last price of 87.36.
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