Harbinger Nominees Elected To Media General Board
Harbinger, the activist fund going after Media General (NYSE: MEG), has successfully installed three representatives to the company’s board. The newspaper publisher announced the successful election of all three nominees, pending an official count: Eugene I. Davis, J. Daniel Sullivan and F. Jack Liebau, Jr. Results will be made official in the coming days, at which point the company will have a comment. Release.
SEE ALSO: Top Media General Shareholder Gabelli Backs Harbinger Slate
The company’s fate was basically sealed when its largest shareholder, Mario Gabelli, signaled his support for the dissident slate. That came after Harbinger won support from various (though not all) proxy advisor services. By that point, it looked like Media General best hope might be to negotiate a settlement, but management stuck to its guns all the way. Despite the heated war of words that’s been waged over the last few months, Media General management said on its recent call that should any of the nominees get on the board, “we’ll work with them”, not that they have much choice in the matter. Among Harbinger’s bill of complaints: that the company has made misguided moves on the broadcast front, that it hasn’t taken advantage of media duopolies in key markets, and that it’s made various digital investments, like DealTaker (social shopping and Blockdot (advergaming) that have no strategic relevance to the company.
According to Harbinger’s statement, the firm’s nominees received between 57 and 68 percent of the votes cast. It added a couple of boilerplate lines about wanting to move beyond the fight and getting to work turning around the company. Shareholders are please with the vote they took, as shares are trading up over 4 percent.
Posted In: Media & Publishing, Newspapers, harbinger capital, media general
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