Citigroup deal leads to skirmish over closed-end fund; Two hedge funds seek to block management agreement in proxy.(News)

Investment News, October, 2005

Byline: David Hoffman NEW YORK - Investing is tough enough without having to choose sides in a proxy fight, but it's something closed-end-fund investors are sometimes asked to do - usually because the fund in question trades at a discount to net asset value. It's not always clear which side has the best interests of shareholders at heart, industry experts say.

Take the recent spat between the $1.5 billion Salomon Brothers Fund Inc. of Stamford, Conn., advised by Salomon Brothers Asset Management Inc. of New York, and two related New York-based hedge funds, Elliott Associates LP and Elliott International LP. The Salomon fund has been trading at a discount for some time. `No' vote is urged As a result, the Elliott funds said in...

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