UPDATE 1-Harbinger says Media General action not 'hostile'

Wed Jan 30, 2008 5:50pm EST
 
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NEW YORK, Jan 30 (Reuters) - Hedge fund Harbinger Capital Partners, which is seeking to elect members to the board of Media General Inc (MEG.N: Quote, Profile, Research, Stock Buzz), said it was not aiming to eliminate the company's dual class structure and that its actions were not "hostile," according to a regulatory filing.

Harbinger owns 18.4 percent of Media General's class A shares of the company, making it the second-largest shareholder, according to a letter to the company filed with the U.S. Securities and Exchange Commission that was disclosed on Wednesday.

Harbinger, in conjunction with investment firm Firebrand Partners, is also seeking board seats at The New York Times Co (NYT.N: Quote, Profile, Research, Stock Buzz).

Media General said in a statement it was open to discussions with Harbinger but disagreed with Harbinger's view that the company would benefit from changing its corporate governance or adjusting its strategic direction.

"We welcome Harbinger's willingness to engage in a dialogue with us, in part because we have been trying to do so with them for several months, and we look forward to hearing whatever Harbinger has to say," the company said.

Its shares closed down 3.6 percent to $19.57 on the New York Stock Exchange. (Reporting by Kenneth Li, editing by Maureen Bavdek/Jeffrey Benkoe)

 

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