Western Investment LLC Nominees Receive Backing Of Major Proxy Advisor In Bid For Seats On The Gabelli Global Multimedia Trust, Inc. (NYSE: GGT) Board
Western Investment LLC (“Western Investment”) today announced that Institutional Shareholder Services Inc. (“ISS”), a wholly-owned subsidiary of RiskMetrics Group, Inc., an influential provider of voting advisory services to mutual funds and other major institutional investors, has recommended that its clients vote their shares of the Gabelli Global Multimedia Trust, Inc. (NYSE: GGT)(“GGT” or the “Fund”) on the GOLD proxy for Western Investment’s director nominees, Arthur D. Lipson and Gregory R. Dube, at GGT’s 2010 Annual Meeting of Stockholders scheduled for June 8, 2010. ISS also recommended a vote in favor of a shareholder proposal, also supported by Western Investment, to declassify the Fund’s Board of Directors.
In making its recommendation, ISS noted that:
“[G]iven the persistent discount to NAV and poor long-term performance relative to the Fund’s peers and benchmark index, ISS believes Western’s nominees deserve an opportunity to focus more on adding value to the Fund through the authorization of an accretive program of share repurchases and/or tenders when the discount to NAV rises above a set value. We believe, based on the Fund's persistent discount to NAV and poor long-term performance compared to its peers and benchmark index, it is warranted to replace two incumbent directors with dissident nominees Lipson and Dube, based on their diverse business backgrounds and board experience. We believe this may bring a fresh perspective to board deliberations. As such, ISS believes the Fund's wide discount and NAV underperformance relative to its peers and benchmark index justifies supporting Western's nominees.”
Art Lipson, Managing Member of Western Investment, commented: “We are gratified that ISS recognizes that a steep and persistent market discount to NAV is a disservice to GGT shareholders. We believe that their support for our position is enormously significant.” Noting the GGT Board’s recent expansion of the Fund’s share repurchase authorization to permit purchases when the discount to NAV is larger than 5% rather than 10%, Mr. Lipson continued: “It appears that the Board is hearing the stockholders’ discontent, and applaud them for taking action. If elected, we look forward to working with our fellow board members to see that GGT’s performance is sustainable and to help them reduce or eliminate the market discount to NAV. Since the Annual Meeting is only days away, we are urging GGT shareholders to see that their shares are voted by following the internet or telephone voting instructions on their GOLD proxy card. It is important for every shareholder to know that even if you have already voted another proxy, you have every right to change your mind and vote the GOLD card today. The LAST vote you send in is the only one that will count, so please vote your shares today.”
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