UPDATE 1-Time Warner leaning to spin-off method for AOL
* Bewkes says AOL spin-off method more likely
* Says AOL able to handle debt on own balance sheet
* Says market conditions have stabilized for Time Warner
By Yinka Adegoke
NEW YORK, May 29 (Reuters) - Time Warner Inc (TWX.N: Quote, Profile, Research) Chief Executive Jeffrey Bewkes said on Friday that his company is still leaning toward spinning off AOL to shareholders as the preferred method for divesting the struggling Internet unit.
Bewkes said forms of separation being considered include a split-off, spin-off or a combination.
A spin-off would see Time Warner distribute the stock it owns in AOL on a pro rata basis to its shareholders, similar to a dividend distribution.
As widely expected, Time Warner confirmed on Thursday that it would separate AOL as an independent, publicly traded company. [ID:nN28396528]
Bewkes told Sanford Bernstein's Strategic Decisions Conference on Friday that AOL will be setting up its own board and other requirements for a public company over the next six months in time to complete the separation. Continued...
India Investment Summit 2009
Top executives and bankers discuss their own plans and the broader opportunities and challenges for India. Full Coverage
GLOBAL RECOVERY
Global economy in holding pattern - IMF
The global economy is in a holding pattern and vulnerable to more upheaval, the head of the IMF said, adding a lasting recovery will depend on policymakers taking the proper steps in the coming months. Full Article
India
US
UK
