Seagram Co. chairman and chief executive Edgar Bronfman said the company is “not in any hurry” to raise its stake in Time Warner Inc. to 15% from its current 5.7%.
Following the Seagram annual meeting in Montreal Wednesday, Bronfman said, “We are not going to chase the stock up.”
He added, “It could take a year” or “a few months” to raise the stake to 15 %.
The distiller made its purchase, valued at over $ 700 million, public in a filing with the Securities & Exchange Commission May 16.
Bronfman said Seagram has arranged a line of credit of $ 2 billion with banks , but didn’t specify whether the line of credit was exclusively to fund stock purchases.
The exec said the 15% figure was “somewhat arbitrary, but not totally.” He said he believes such a position will give Seagram “some input” into Time Warner’s management, “but we don’t want to run the company.”
Bronfman said his son, Seagram prexy/chief operating officer Edgar Bronfman Jr., is to meet soon with Time Warner CEO Gerald Levin. The elder Bronfman was non-committal as to whether Seagram will eventually seek board representation at Time Warner.