As RBR+TVBR readers know, a big war of words has erupted between TEGNA and activist shareholder Standard General, the Soohyung Kim-led private investment group demanding seats on the company’s Board of Directors.
Tensions further escalated on Tuesday, with both organizations pitching shareholders with respective cases as to why their board nominees should be chosen at TEGNA’s annual shareholders’ meeting on April 30.
Late Wednesday, TEGNA fired a missile designed to fully put to an end Standard General’s quest for a greater say-so of the company’s day-to-day actions.
In a short but blunt statement distributed late Wednesday, Tysons, Va.-based took aim at a Schedule 13D amendment filed with the SEC by Standard General.
It called the filing “troubling” for all TEGNA shareholders.
Why? “Just one day after describing itself in a letter to shareholders as ‘the largest active shareholder of TEGNA’ with a 9.7% ownership position, Standard General … disclosed that it sold approximately 25% of its shares shortly after the record date and instead took derivative positions.”
This reduced its stock ownership position.
But, TEGNA states that Standard General is likely able to retain its ability to vote all of the shares it held prior to those sales at the annual shareholders’ meeting.
“None of this information was communicated” in a shareholder letter from Standard General and on a microsite it created to sway TEGNA stockholders, TEGNA says.
“We urge shareholders to look at the Schedule 13D amendment for themselves,” TEGNA said.
Full details can be seen here: https://www.sec.gov/Archives/edgar/data/39899/000110465920041472/tm2014468d1_sc13da.htm
TEGNA concluded its statement by assailing Standard General for “seeking dramatic change” to TEGNA’s board, and again urging its long-term shareholders to ask themselves “why it would be in their interest to disrupt TEGNA’s solid track record of delivering successful operational and financial results and prudent stewardship, especially during a time of national economic distress.”
