Special Meeting of Stockholders of Seligman Select Municipal Fund, Inc. (NYSE: SEL) Further Adjourned to Solicit Votes in Respe

Published in Business and Finance on Friday, January 16th 2009 at 9:25 GMT, Last Modified on 2009-01-16 09:27:08 by Market Wire
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NEW YORK--([ BUSINESS WIRE ])--Today, Seligman Select Municipal Fund, Inc. ("Select Municipal") (NYSE: SEL) held an Adjourned Special Meeting of Stockholders (the "Meeting") to consider the proposed Agreement and Plan of Merger and Liquidation (the "Plan"), the merger and the other transactions contemplated by the Plan, including the acquisition of Select Municipal by National Municipal Class ("National Fund"), a series of Seligman Municipal Fund Series, Inc. (the "Acquisition"), as described in the proxy statement/prospectus, dated October 28, 2008. However, because sufficient votes to approve the Acquisition proposal were not received at the Meeting, the Meeting has been further adjourned to February 5, 2009 to solicit additional votes to approve the Acquisition proposal.

Although more than 95% of the votes received to date (representing at least 66% of the outstanding shares of Select Municipal) have voted in favor of the Acquisition proposal, the Acquisition proposal has not received the required vote of 66-2/3% of all outstanding shares of Select Municipal's common stock and preferred stock (which vote together as a single class). Accordingly, the Meeting has been further adjourned to 3:30 p.m. on February 5, 2009 (the "Adjourned Meeting") at the offices of Select Municipal, 100 Park Avenue, 8th Floor, New York, New York 10017. This adjournment will provide additional time for Select Municipal's solicitation of proxies to approve the Acquisition proposal.

The close of business on October 24, 2008 is the record date for the determination of Stockholders entitled to notice of, and to vote at, the Adjourned Meeting or any adjournment or postponement thereof, in respect of the Acquisition proposal.

National Fund is an open-end fund that pursues an investment strategy similar to that of Select Municipal. Unlike Select Municipal, which is a closed-end fund that utilizes leverage provided by preferred stock, National Fund does not utilize leverage. As consideration for their shares, holders of Select Municipal's common stock will, upon consummation of the Acquisition, receive Class A shares of National Fund with a value equal to the net asset value of their shares of Select Municipal. Redemptions and exchanges of shares of National Fund issued pursuant to the Acquisition will be subject to a redemption fee of 2% for a period of one year following the closing of the Acquisition. The agreement relating to the Acquisition requires that the outstanding shares of preferred stock of Select Municipal be redeemed prior to consummation of the Acquisition.

Since November 7, 2008, Select Municipal and National Fund (the "Funds") have been managed by RiverSource Investments, LLC ("RiverSource"). Prior to such date, the Funds were managed by J. & W. Seligman & Co. Incorporated. Shareholders of National Fund approved a new investment management services agreement between Seligman Municipal Fund Series, Inc. (on behalf of National Fund) and RiverSource at a special meeting of shareholders held on November 3, 2008. Such approval is a condition to the closing of the Acquisition of Select Municipal by National Fund.

The net asset value of shares of Seligman Municipal may not always correspond to the market price of such shares. Shares of many closed-end funds frequently trade at a discount from their net asset value. Select Municipal is subject to stock market risk, which is the risk that stock prices overall will decline over short or long periods, adversely affecting the value of an investment in the Fund.

Fixed-income securities owned by the Funds are subject to interest-rate risk, credit risk, repayment risk, and market risk. To the extent that the Funds concentrate their investments in municipal securities issued by a single state and its municipalities, specific events or factors affecting a particular state may have an impact on the municipal securities of that state without affecting the municipal market in general.

You should consider the investment objectives, risks, charges, and expenses of a Fund carefully before investing. You can obtain a Fund's most recent periodic reports and other regulatory filings (including the prospectus relating to National Fund) by contacting your financial advisor or Seligman Services, Inc. at 800-597-6068. These reports and other filings can also be found on the Securities and Exchange Commission's EDGAR Database. You should read these reports and other filings carefully before investing. National Fund is distributed by Seligman Advisors, Inc.

There is no guarantee that a Fund's investment goals/objectives will be met, and you could lose money.