Harbinger Quits Media General Board, Stock

Mar 19 2009 | 2:46am ET

Activist hedge fund Harbinger Capital Partners may have won the battle, but Media General has apparently won the war.

After waging a knock-down, drag-out, and successful, proxy battle with the owner of the Richmond (Va.) Times-Dispatch and Tampa (Fla.) Tribune to win representation on the company’s board, Harbinger is giving up those seats. The New York hedge fund, which once owned 18% of Media General’s Class A shares, has dumped most of its holdings in the company.

Harbinger has pushed Richmond-based Harbinger to cut its debt and sell its Florida holdings, which include WFLA, the state’s highest-rated television station. The hedge fund also attacked Media General’s dual-share structure, which guarantees the Bryan family’s control over the company.

But Jack Liebau, Eugene Davis and Daniel Sullivan remained outnumbered on the nine-member board of directors, and were further marginalized when Media General increased the size of its board to 11 to give seats to two former directors ousted by the Harbinger nominees.

Media General plans to cut the size of its board back to nine with the departure of the Harbinger representatives.


In Depth

Q&A: MackeyRMS's Chris Mackey On A High Tech Fix To Broker Votes

Jun 23 2017 | 8:17pm ET

The looming implementation of the EU’s MiFID II rules regarding research has put...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Steinbrugge: Asia-Focused Hedge Funds Offer Great Opportunities

Jun 23 2017 | 3:33pm ET

Emerging market strategies have outperformed their developed-market peers for five...

 

From the current issue of