Turner leads move to boot Steve Case

By David Lieberman
USA Today

NEW YORK — Three of AOL Time Warner's biggest shareholders, including Vice Chairman Ted Turner, have launched a campaign to expel Chairman Steve Case and give his job to another board member — possibly Turner — according to people close to the company.

Steve Case, a Punahou graduate, is chairman of AOL Time Warner. Advertiser library photo

Odds are low that directors will overthrow Case at a regularly scheduled meeting here tomorrow. Foes would need the votes of at least 11 of the 14 board members under its bylaws. Crawford and Malone are not on the board.

And Honolulu-born Case is digging in his heels. He's expected to plead his case in meetings he has scheduled with institutional investors. He has positioned himself as a long-term strategist, while Chief Executive Officer Richard Parsons focuses on daily matters.

"There's no basis whatsoever to these rumors, and Steve Case isn't going anywhere," said AOL Time Warner spokeswoman Tricia Primrose.

Yet, Case's foes think he might change his mind if a board majority wants him out. Ex-CEO Gerald Levin decided in December to leave after losing board support.

Turner, Crawford and Malone pose a formidable threat. They've been allies since cable's early days.

They're telling others that it's hard to see Case's contributions to the company and it is likely that their complaints will resonate with investors. AOL's stock price has plummeted nearly 62 percent.

Case "does not serve a useful function," says Vogel Capital Management's Hal Vogel. "We don't need his five- or 10-year visions."

Doug Kass, whose hedge fund Seabreeze Partners is a large AOL holder, says that "there's a great deal of animosity on the Time Warner side that they got (cheated) into exchanging real cash flow for fantasy stock. (Case) is like a bad penny they want to get rid of."