Investment Advisor Tells N.Y. Times Shareholders To Withhold Director Votes
April 9, 2007 at 5:46 AM (PT)
The NEW YORK TIMES CO.'s stock structure continues to come under heavy fire, with influential investment advisor INSTITUTIONAL SHAREHOLDER SERVICES telling TIMES shareholders to withhold their votes for the board of directors to protest the disproportionate voting power of the company's class B shares, held by the OCHS-SULZBERGER family. The family, founders of the paper, can elect nine of the company's thirteen directors.
ISS says that keeping the votes off the table at the APRIL 24 annual shareholder meeting might persuade the company to change the voting structure. The voting dispute has been a major point of contention between MORGAN STANLEY analyst HASSAN ELMASRY and the company, prompting the OCHS and SULZBERGERS to withdraw their personal investments from MORGAN STANLEY accounts.
The TIMES owns Classical WQXR-A/NEW YORK and is selling RADIO DISNEY affiliate WQEW-A/NEW YORK to ABC, which has been operating it under an LMA for several years and exercised an option to buy the station this WINTER.