Business & Finance
Business and Finance
Business and Finance
Fri, January 16, 2009 Western Investment Announces That PPM Shareholders Voted Decisively to Terminate UBS Investment Management Contract and to Proh
NEW YORK--([ BUSINESS WIRE ])--Western Investment LLC today announced that, based on preliminary voting results, shareholders voting at the annual meeting of Investment Grade Municipal Income Fund, Inc. (NYSE:PPM) voted to support a shareholder proposal recommending that the Board of Directors of PPM be prohibited from retaining a UBS (NYSE: UBS) subsidiary and certain other entities as PPM's investment manager.
Arthur D. Lipson, the managing member of Western Investment, stated, "We are pleased that PPM shareholders agree that PPM needs to end its relationship with UBS. Given UBS's actions over the past year, including, among other things, charges of tax evasion, real-estate value inflation and $150 million in penalties stemming from its conduct related to auction rate securities, we are surprised PPM has continued to maintain its relationship with UBS this long. Adding to this cloud overhanging UBS is the fact that on January 14, 2009, a US District Judge declared Raoul Weil, an ex-UBS senior executive, a fugitive from justice. The U.S. government has alleged that UBS helped 20,000 wealthy American clients evade taxes with false documents used to hide billions of dollars in assets. It is our hope that, in the face of strong shareholder support for ending PPM's relationship with UBS, as well as continued issues regarding UBS, the Board will listen to shareholders and cut ties with UBS."
Mr. Lipson continued, "If the Board needs additional evidence of shareholders' position on this issue, they should seriously consider that, based on our estimate of the preliminary voting tally, shareholders also voted for a second additional shareholder proposal to terminate PPM's advisory contract with UBS. Despite this shareholder support, due to a super-majority voting requirement for termination, PPM's contract with UBS is not required to be terminated. In any event, the Board should regard this vote as a clear message from shareholders that should not be ignored. In light of the widespread shareholder support for Western's nominees, and two shareholder votes to terminate the fund's relationship with UBS, we call upon the Board to appoint a Western representative to the Board who will work together with the other members of the Board for the benefit of all shareholders."
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