CNNMoney.com – J. & W. Seligman & Co. began courting possible suitors earlier this year, but any deals that emerge from the talks will face hurdles imposed by at least one activist hedge fund.
The firm, which manages roughly $20 billion, offers suitors two jewels that stand out from its beleaguered traditional money management operations: a highly successful $3 billion hedge fund unit, and a $2.2 billion closed-end mutual fund known as Tri-Continental Corp. (TY). Talk of a deal has also attracted Arthur Lipson, whose Western Investment owns 5.29 million shares of Tri-Continental. Lipson told Hedge Fund Trades he might lead an effort among Tri-Continental shareholders to boost the company’s value if Seligman doesn’t take steps to address the issue. Lipson may succeed in finding support because Tri- Continental’s second- and third-largest shareholders are also activist funds.
