Shareholders voted to reclassify one-for-one each outstanding share of Media General's Class A and Class B Common Stock into a newly created class of Common Stock, thereby eliminating Media General's dual-class stock
Dillard's, owing to its anachronistic dual-class stock
structure, has been able to hold out longer than most corporations of comparable size and visibility.
the company's executive chairman and publisher of its flagship New York Times), trying to get the company to abandon a variety of practices, not the least of which had been an attempt to give up on its dual-class stock
Fitch recognizes the credit benefits of the company's dual-class stock
structure, the board's long-term focus and management's conservative culture.
Media General's dual-class stock
structure will be unwound as part of the transaction
Dillard's has a dual-class stock
structure that gives most of the voting power to company insiders, including members of the Dillard family, which controls the company.
The vote in favor of the proposals to eliminate RGA's dual-class stock
structure was considerable.
The Dillard family retains control of the board because, under the dual-class stock
structure, the family's Class B shares choose the other eight directors.
In a filing late last month with the SEC, Harbinger said that its actions at Media General weren't "hostile," though it was seeking to eliminate the company's dual-class stock
It is also possible that in any given firm, the creation of dual-class stock
entrenches management and gives the same managers greater bargaining power in the event of a control contest.
Under the deal, both companies will continue the dual-class stock
structure that is the hallmark of many public media companies that had a family ownership genesis.
Fitch believes that family or trust-owned enterprises with dual-class stock
structures are better positioned to take a longer-term view of the risks and opportunities in the newspaper space and to weather near-term turbulence in the stock markets, thereby better insulating them from shareholder activist-driven event risk.