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Shareholders Seek To Oust Case, Allies from AOL Board -FT

TOKYO -(Dow Jones)- Some of AOL Time Warner Inc.'s most influential shareholders are considering an attempt to oust Steve Case, former chairman, and two of his allies from the media group's board at its annual meeting, the Financial Times reported on its Web site Monday.

Several investors have discussed voting against Case and two other directors - Miles Gilburne and Kenneth Novack - when they are nominated for re-election to AOL's board in May, the FT cited one shareholder as saying.

The discussions show some investors - spurred on by Case's decision to quit as chairman this month - are eager to scrub his influence from the company entirely. It is unlikely they will be able to muster enough votes for a majority but people involved in the talks believe it would be embarrassing for the directors if even a significant minority voted against them.

Case announced his resignation as chairman this month following pressure from shareholders and fellow board members. But he remains chairman of the board's strategy committee, raising concerns that he may oppose moves to spin off the troubled America Online internet division. AOL executives have stressed they have no plans to divest America Online but that could become an option if the business is not revived.

Novack, who is a vice-chairman of AOL Time Warner, is one of Case's closest allies. He helped engineer the merger with Time Warner. Gilburne was a senior member of AOL's executive team prior to the merger.

Case, Gilburne and Novack could not be reached for comment, the FT said. AOL Time Warner declined to comment.