Lens Hosts Special Meeting of Metromedia International Group Shareholders
NEW YORK, Feb. 15 /PRNewswire/ -- Lens Investment Management, LLC, the shareholder activist specialist, held a meeting yesterday for shareholders of Metromedia International Group, Inc. (Amex: MMG), the global communications company founded and chaired by John W. Kluge. The meeting served as a forum for shareholders to exchange information about the company and to discuss management's performance and the company's value.
Approximately 100 people representing about 25% of the company's common stock, or approximately one-third of common stock not controlled by MMG management, attended in-person or by conference call.
The meeting began with a slide presentation by Richard Bennett, Lens's Chief Activism Officer, and John Goodrich, Lens's Director of Research, outlining MMG's historical stock performance, corporate structure, financial reporting practices and corporate governance issues. Lens noted several issues as contributing to MMG's poor stock performance, including senior management's limited attention to the company due to their management commitments to multiple other companies, opacity of the company's financial reporting, and a lack of Wall Street research coverage. Lens drew parallels between today's MMG and Metromedia, Inc., a different publicly traded company founded and managed by Mr. Kluge. Mr. Kluge took Metromedia, Inc. private in 1983 and subsequently sold off its assets for six times the purchase price, resulting in billions of dollars in personal profit.
"Metromedia International Group's management behave as though they were running a private company, instead of managers of a listed public company accountable to its shareholders," said Mr. Bennett.
Mr. Bennett cited a 1999 MMG-published bond exchange offer covenant in which the company stated that Metromedia Company effectively controls nominations to MMG's board of directors and therefore the direction and operation of the public company. Metromedia Company is a private interest of John Kluge and MMG CEO Stuart Subotnick and large owner of MMG shares.
During the question and comments session, shareholders expressed their frustration with MMG's management and performance of the company's stock and discussed current shareholder initiatives.
A recording of the meeting can be heard until March 14th by calling 800-475-6701. The accompanying slide presentation is available on Lens's Web site at: lens-inc.com.
Lens has been retained by Elliott Associates, L.P., and Elliott International, L.P., institutional investors with a 3.62% position in MMG. Elliott Associates is an institutional investor based in New York, and Elliott International is an institutional investor based in the Cayman Islands. The investment activities of Elliott Associates and Elliott International are under common management.
Metromedia International Group, Inc. is a global communications and media company operating telephony and television businesses in Eastern Europe, republics of the former Soviet Union and other emerging markets. The company also owns the lawn and garden equipment manufacturer Snapper, which it has called a "non-core" asset.
Lens (http://www.lens-inc.com), founded in 1991 by Robert A.G. Monks as an investment management firm, was among the first fund managers to take an active role in corporate governance. Over the past decade, Lens, which operates no longer as an investment manager, but rather as a specialist in investor activism, has succeeded in increasing the value of shareholders' investment in companies that include Scott Paper, American Express, Eastman Kodak and Pioneer Group.
SOURCE Lens Investment Management, LLC
CO: Lens Investment Management, LLC; Metromedia International Group, Inc.; Elliot Associates, L.P. |
