Time Warner's board of directors last week approved a shareholders rights plan of "poison pill." (Brief Article)

Broadcasting & Cable, January, 1994

Time Warner's board of directors last week approved a shareholders rights plan or "poison pill." Last week's action was seen by some as a response to the accumulation of Time Warner stock by Seagram Co., which owns 11.8% of Time Warner, making it the largest shareholder. The latter's announcement said the shareholder rights plan "effectively would limit the ownership of Time Warner common stock by any person or group to 15%" of the total.

The announcement said last week's action was in response to "concerns...raised by several institutional investors and time Warner's strategic partners," including US West. Time Warner stock closed Thursday at $40, up 7/8.