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Metromedia International Group, Inc.
(Name of Registrant as Specified in Its Charter)
Elliott Associates, L.P. and Elliott International, L.P.
(Name of Person(s) Filing Proxy Statement, if Other Than the Registrant)
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[Lens Letterhead]
Contact: Richard A. Bennett Scott Sunshine or Carol Crane
Chief Activism Officer TowersGroup
Lens (212) 354-5020
(207) 775-4296 scottsunshine@towerspr.com
rbennett@lens-inc.com carolcrane@towerspr.com
SHAREHOLDER ACTIVIST, LENS, CRITICIZES
METROMEDIA FOR NOT DECLARING PREFERRED DIVIDEND
Portland, ME, May 25, 2001 - Metromedia International Group's (AMEX:MMG)
Tuesday, May 22 decision not to declare a dividend on its preferred stock has
been sharply criticized by investor activist firm Lens Investment Management,
LLC.
MMG issued a press release indicating that the company had elected not to
declare a dividend on its preferred stock. No warning and scant explanation was
given for the abrupt decision. MMG's release also made reference to a previous
announcement that it had engaged ING Barings and Salomon Smith Barney Inc. for
advice on "alternatives to sell or spin-off certain of its businesses."
"We believe MMG's management yet again is showing callous indifference to
the interests of its stockholders," said Richard Bennett, Principal of Lens
Investment Management. "In our opinion their announcement regarding the dividend
on preferred stock raises more questions than it answers. As for MMG's statement
about selling or spinning-off some of its businesses, we remain highly
skeptical. We're interested in seeing if MMG will act on the advice of its
bankers."
Lens is working for Elliott Associates, L.P. and Elliott International,
L.P., institutional investment firms under common management, who have filed a
preliminary proxy statement with the SEC in connection with the MMG 2001 Annual
Meeting. The proxy nominates candidates to the MMG Board of Directors and puts
forward two stockholder proposals that would limit the number of insiders
allowed on the Board and allow substantial stockholders to demand that special
meetings be called.
(More)
SHAREHOLDER ACTIVIST, LENS, CRITICIZES METROMEDIA/...PAGE 2
Metromedia International Group, Inc. is a global communications and media
company operating telephony and television businesses in Eastern Europe, the
republics of the former Soviet Union and other emerging markets. The company,
headed by Chairman John W. Kluge and CEO Stuart Subotnick, also owns the lawn
and garden equipment manufacturer Snapper, which it has called a "non-core"
asset.
Elliott Associates, L.P. and Elliott International, L.P. are institutional
investors with a collective ownership of approximately 3.9% of MMG Common Stock.
Elliott Associates is based in New York, and Elliott International is based in
the Cayman Islands. The investment activities of Elliott Associates and Elliott
International are under common management.
Founded in 1991 by Robert A.G. Monks as an investment management firm, Lens
was among the first fund managers to take an active role in corporate
governance. Over the past decade, Lens, which no longer operates as a portfolio
manager, but rather as a specialist in investor activism, has succeeded in
increasing the value of shareholders' investment in companies including Scott
Paper, American Express, Eastman Kodak and Pioneer Group. A copy of this and all
previous Lens press releases relating to MMG can be found online at
www.lens-inc.com.
PLEASE READ THE PROXY STATEMENT OF ELLIOTT ASSOCIATES AND ELLIOTT
INTERNATIONAL WHEN IT BECOMES AVAILABLE BECAUSE IT CONTAINS IMPORTANT
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PRELIMINARY FORM OF THIS PROXY STATEMENT IS PUBLICLY AVAILABLE.
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