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UPDATE 3-Glass Lewis urges rival Media General nominee vote

Mon Apr 14, 2008 9:06pm EDT
 
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(Adds Harbinger comment)

By Robert MacMillan

NEW YORK, April 14 (Reuters) - Proxy advisory firm Glass Lewis & Co has recommended that Media General Inc (MEG.N: Quote, Profile, Research, Stock Buzz) shareholders vote for one rival nominee put forth by dissident shareholder Harbinger Capital Partners, Harbinger said on Monday.

Glass Lewis also recommended that shareholders of the newspaper publisher and television broadcaster not vote for Media General's own nominees, Harbinger said.

The proxy adviser's recommendation is the latest move in an increasingly fractious dispute between Media General, publisher of the Richmond Times-Dispatch newspaper, and Harbinger, an Alabama hedge fund that holds an 18.2 percent stake in the company's publicly traded shares.

Harbinger has urged the company to consider shifting its asset mix, saying it has made some poor decisions that have hurt its stock price.

"We believe that Glass Lewis's decision corroborates our view that the current Media General board of directors has not succeeded in delivering stockholder value and is in urgent need of media industry experience and a fresh perspective," Harbinger Vice President Joseph Cleverdon said.

Media General Chief Executive Marshall Morton earlier Monday told shareholders in a letter that shareholders should ignore Harbinger's choices.

In the letter, filed with the U.S. Securities and Exchange Commission, Morton said Harbinger does not understand the newspaper industry or the company and has proposed asset sales that are not in the company's best interest.  Continued...

 

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