Icahn: No 'Disastrous' Moves

Come Wednesday, the Time Warner(TWX Quote) board is expected to ratify what it has already tacitly agreed to: the sale of 5% of America Online to Google(GOOG Quote). The transaction implies a value of $20 billion for the Internet service and expands an existing advertising and search agreement.

Time Warner will do the deal at the displeasure of 3% shareholder Carl Icahn, who has engaged Lazard to look at strategic alternatives for the large media company and propose an alternate slate of directors in time for its annual meeting next spring.

In an open letter to the Time Warner board released Monday, Icahn wrote: "I am not opposed to Time Warner entering into an AOL transaction that creates long-term value. However, I am deeply concerned that the Time Warner board may be on the verge of making a disastrous decision concerning an agreement with Google if this agreement would make it more difficult in any way or effectively preclude a merger or other type of transaction with companies such as IAC/InterActive(IACI Quote), eBay(EBAY Quote), Yahoo!(YHOO Quote), or Microsoft(MSFT Quote) etc., etc. ..." ...