While hedge fund Harbinger Capital Partners Funds
grabbed headlines earlier in the week with its activist efforts at the New York Times Co., its similar efforts at Media General Inc. -- another media company with dual-class shares -- have gone relatively unnoticed.
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Harbinger in a Jan. 24 DFAN14A filing proposed the nomination of three Class A directors to Virginia-based Media General, a $451 million publishing, broadcast and interactive media company that's amidst a restructuring. The firm's campaign prompted Media General to issue a press release the next day calling the move hostile, and concluded by urging "Harbinger to reconsider and abandon its ill-advised, hostile and thoroughly unwarranted course of action." If you read between the lines, it sounds like Media General's management is fearful for their jobs, so Thursday's earnings call could be an interesting one.
Perhaps looking to influence the conversation at the earnings call, Harbinger issued a response Wednesday attempting to assuage Media General management that the firm does not have hostile intent and is only looking to increase value -- the stock has fallen 39% since Harbinger began in April accruing its stake, which currently stands at 18%. Harbinger has not been very clear about what steps it would recommend to goose the shares.
Meanwhile, Harbinger has teamed with another private investor, Firebrand Partners, to nominate four candidates for election to the board of the New York Times during its 2008 annual meeting. Harbinger and Firebrand own a combined 4.9% stake in the Times. - Matthew Wurtzel
See Harbinger's letter to Media General via SEC Edgar
See related Schedule 13D filing via SEC Edgar
See Jan. 25 press release from Media General
See Dealscape: Harbinger, Firebrand take aim at New York Times board
See auction profile from AuctionBlock.com (subscription required)
