Seeks FCC Review of Shareholder Group’s Liquidation Plan : Storer Files Protest Over Dissidents’ Bid

Storer Communications on Tuesday filed a protest with the Federal Communications Commission over a bid by a dissident shareholders’ group to oust Storer’s directors.

The shareholders’ group wants to replace the directors with its nominees so it can then liquidate the broadcasting concern. The group, which said it owns 5.3% of Storer’s stock, is led by Coniston Partners, a New York investment firm.

A week ago, when the group announced its desire to replace the board at Storer’s annual meeting May 7, the group also told the FCC that it did not believe that its effort required a full examination by the FCC nor that it required FCC approval.

However, Storer told the FCC that the proposal to replace its directors should require a full review by the FCC, including public hearings. Storer’s holdings include seven TV stations.

Peter Storer, chairman and chief executive of the Miami-based company, said in a statement that the group’s application with the FCC “is in conflict with federal law with respect to changes in control of FCC licensees in that it purports to invoke procedures that would avoid a full examination by the FCC of the group’s qualifications and an opportunity for prior public participation.”

Storer Communications’ petition said the FCC must be allowed a full opportunity to determine in advance whether the public interest would be served by the proposed change of directors, Storer said.

The shareholders’ group, called the Committee for Full Value of Storer Communications, issued a statement saying it believed that the FCC “will act consistently with its previously stated position that it will not take sides in a contested situation but will allow the Committee to compete on equal terms with management for votes of Storer stockholders.”

The dissident shareholders’ group wants Storer Communications liquidated because it contends that the company’s assets are worth substantially more than is reflected in the price of Storer’s stock, which closed Tuesday at $70.75 a share, down 62.5 cents, on the New York Stock Exchange.

In addition to its TV stations, Storer operates cable-TV systems in 18 states with about 1.5 million subscribers. In 1984, Storer lost $16.7 million on revenue of $536.8 million. Storer was profitable in last year’s fourth quarter, however.