Harbinger, the activist hedge fund looking to gain board representation at both NYTCo (NYSE: NYT) and Media General (NYSE: MEG), has sent a letter to Media General CEO Marshall Morton responding to the newspaper company’s public statements put out last Friday. In MEG’s statement, Morton declared himself “puzzled” at Harbinger’s “hostile actions,” calling them “thoroughly unwarranted.” Not that it will be much comfort to Morton, but Harbinger’s response, filed today with the SEC, promises that it has no hostile intent and is only here to help. What’s more, it notes, as a holder of nearly one-fifth of the company, wanting board representation shouldn’t be particularly shocking. Meanwhile, Media General has responded with a letter of its own, questioning Harbinger’s intent. Some highlights after the jump:
— “We were disappointed by the tone of the Company’s public press release in response to our notice of January 24 nominating three individuals for election to the board. Our action was neither ‘hostile’ nor ‘ill-advised.’ We made no public press release, and we filed our notice in a manner consistent with the Company’s bylaws and as is our right as a responsible shareholder.”
— “Furthermore you should know that we have a history of providing long-term support to companies that face serious challenges or are out of favor in the investing community, such as is currently the case with Media General. In this case, we seek to add value by nominating candidates who will bring fresh ideas and valuable perspective to the Company’s board.”
— “We were also surprised that you were ‘puzzled’ by our notice and found it ‘thoroughly unwarranted.’ As you know, we currently hold 18.4 percent of the Company’s Class A shares, making us the Company’s second largest shareholder. We also note that since we first invested in Media General, the Company’s stock has declined 39 percent.”
— “Media General possesses a terrific collection of assets, and we believe that with the right strategy the Company’s shareholders will ultimately enjoy the benefits of ownership.”
From Media General’s response:
— “We welcome Harbinger’s willingness to engage in a dialogue with us, in part because we have been trying to do so with them for several months, and we look forward to hearing whatever Harbinger has to say.”
— “We question, however, the view expressed in Mr. Falcone’s letter that the way to enhance Media General’s value is to ‘enhance the company’s corporate governance’ and to ‘re-examine and adjust its strategic direction.'”
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