Time Warner Introduces New Rules For Board Nominations

Time Warner Inc (NYSE: TWX) disclosed in a regulatory filing on Tuesday an amendment to its bylaws concerning its Board of Directors.

According to Time Warner's 8-K document, only stockholders, or a group of up 20 stockholders, who have owned 3 percent or more of Time Warner's outstanding common stock continuously for at least three years can nominate an individual to the company's Board of Directors.

Time Warner's amendments come at a time when various activist investors are believed to be eyeing a large stake in the company with the hopes of gaining a seat on the Board of Directors.

Related Link: Report: Nelson Peltz Said To Be Eyeing Stake In Time Warner

Variety quoted a research report by analysts at Jefferies which stated: "This is a new right given to shareholders — it is not a change to an existing right." The analysts added, "we do not believe this amendment is a reaction to recent market speculation related to shareholder activism."

Shares of Time Warner were trading lower by more than 1 percent Wednesday morning.