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Time Warner Plans Outlined by Seagram : Acquisition: Company says at annual meeting that it could take up to a year to raise its stake in the media giant to 15%.

June 03, 1993|From Times Wire Services

MONTREAL — Seagram Co. Chairman Edgar Bronfman Sr. said Wednesday that it could take a month to a year for Seagram to raise its stake in Time Warner Inc. to 15%.

Bronfman also revealed at the company's annual meeting that Seagram has arranged a line of credit of $2 billion with its banks. He didn't specify whether the credit line is exclusively to fund stock purchases, but said the Time Warner investment is expected to bring "significant" long-term benefits.

Seagram announced last week that it has acquired a 5.7% stake in Time Warner, and it has asked U.S. regulators to allow it to increase its holding to 15%.

Edgar Bronfman Jr., Seagram's president and chief operating officer and the prime mover behind the Time Warner deal, is scheduled to meet soon with Gerald Levin, Time Warner's chief executive.

The elder Bronfman was noncommittal as to whether Seagram will eventually seek board representation at Time Warner, the New York-based entertainment and media giant.

He said Seagram likes Time Warner's management and that the company sees its Time Warner relationship evolving into one similar to that which it has as an investor in DuPont Co.

Seagram's 24.3% stake in DuPont has increased in value to $8.5 billion from $2.5 billion, Bronfman said.

Similar gains are expected from Time Warner, he said.

"We just believe this is a good investment, a strong investment for the future," Bronfman said.

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