Time Warner proposes reverse stock split

By Aurore Ankarcrona
CNN

NEW YORK (CNN) - Time Warner Inc. is asking its shareholders to approve a reverse-stock split in a manuever that it's hoped will increase market price and improve stock liquidity, according to a securities filing Monday.

In a letter to shareholders included in the filing, Time Warner Inc, parent company of CNN, indicated that the move is aimed at reducing outstanding shares and doubling or tripling the company's share price. Shareholders would get either 1 share for every 2, or 1 for every 3, as determined by the board of the company and contingent on shareholder's approval of the split.

In the filing, the media conglomerate makes plain its expectation that following the previously announced separation of Time Warner Cable Inc. from the company in early 2009, the market price and trading ranges for the Time Warner common stock will drop.