Martin Capital urges Emmis to sell assets

By Lisa Kerner

Charlotte, N.C., Sept. 14 - Emmis Communications Corp. investor Martin Capital Management, LLP is concerned about the company's "concentration of power and the apparent negative impact on corporate governance." Frank K. Martin, senior partner of Martin Capital, stated the investor's concerns during a conference call with several Emmis board members and the company's corporate counsel on Sept. 11.

Martin also took issue with the company's reluctance to monetize its valuable properties, its lack of a clear vision regarding corporate strategy, and corporate expenses.

During the conference call, Martin recommended that, in light of the company's "dismal long-term economic performance," poor operating performance over the last two years and possible future "economic headwinds," Emmis should consider a sale of its properties and returning capital to shareholders.

In an April 23 filing with the Securities and Exchange Commission, Martin said he will "continue to speak out against the injustices perpetrated against the majority shareholders by the Emmis CEO and the board of directors which, much to the satisfaction of the silenced majority, has recently begun to demonstrate some honest-to-goodness moxie."

Martin made the statement after learning of a possible sale of Emmis' WQCD station. He said the opportunity to monetize WQCD could also be extended to KMVN, WKQX and WLUP.

Martin Capital beneficially owns 3,167,715 shares, or 9.7%, of the Indianapolis media company's outstanding stock.

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