New York Times dissident shareholders boost stake
By Leah McBride Mensching, Friday 22 February 2008 at 22:01 :: Media Ownership :: #1306 :: rss
Investor group Firebrand Partners and hedge fund Harbinger Capital Partners have increased their stake in the New York Times Company to 15.6 percent, making them the largest shareholder, and are pushing for four seats on the board, Brand Republic reported Friday.
The two dissident shareholders doubled their stake to 10 percent last week, before increasing it again to 15.6 percent this week. Scott Galloway, founder of Firebrand Partners, has been calling on the Times Co. to invest more in digital operations.
The New York Times named Dawn Lepore, CEO of Drugstore.com, as one of its board nominees last week, and said it is still looking at the list of nominees put forward by investors, including Galloway, but is asking shareholders to back directors proposed by the Times Co., Brand Republic reported.
“The Harbinger nominees are still under review,” said Catherine Mathis, a Times Co. spokeswoman, according to Brand Republic.
Harbinger Capital Partners and Firebrand Partners issued their own statement, stating that “as the company's largest shareholder, with more than 15 percent of the Class A shares, we are particularly concerned that the company refused to interview any of our nominees despite our repeated offers to meet at their convenience.”
Arthur Sulzberger Jr. holds more than 80 percent of non-publicly traded Class B voting stock, which can be used to choose nine of the 13 board seats. The remaining four seats are left to be chosen by Class A shareholders, which the Sulzberger family still has a say in, according to Brand Republic.
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