For Immediate Release
Tuesday, November 04, 2003
AFSCME President Gerald W. McEntee Lauds ISS Recommendation Against Edison Schools Merger
WASHINGTON —Institutional Shareholder Services (ISS), the most influential proxy advisory firm, recommends against the merger of Edison Schools with Shakespeare Acquisition LLC, an affiliate of Liberty Partners.
Liberty Partners is a private equity investment vehicle for the Florida State Board of Administration, which invest the retirement assets of Florida public employees. The investment is generating controversy because of the use of public school employees' and teachers' retirement assets to fund the acquisition of Edison Schools, the nation's largest public school privateer. Gerald W. McEntee, President of the American Federation of State, County and Municipal Employees (AFSCME), AFL-CIO has the following response:
"The ISS recommendation confirms that the deal between Liberty Partners and Edison Schools is filled with conflicts of interest. The only winner in this transaction is Chris Whittle, Edison's CEO, who stands to make millions of dollars at the expense of shareholders and Florida's public employees."
"ISS blows the whistle on Whittle, who takes all the investors for a ride in this transaction due to a flawed process, valuation concerns and conflict of interests."
The American Federation of State, County and Municipal Employees (AFSCME), AFL-CIO, is the nation's largest and fastest growing public service employees union with 1.4 million members. AFSCME members participate in public pension funds with assets totaling more than $1 trillion. AFSCME Council 79 represents Florida's 110,000 public service employees.
