sec document
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
--------------
SCHEDULE 13D
(RULE 13d-101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
TO RULE 13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO
RULE 13d-2(a)
(Amendment No. )(1)
Tri-Continental Corporation
---------------------------
(Name of Issuer)
COMMON STOCK, PAR VALUE $0.50 PER SHARE
---------------------------------------
(Title of Class of Securities)
895436103
---------
(CUSIP Number)
STEVEN WOLOSKY, ESQ.
OLSHAN GRUNDMAN FROME ROSENZWEIG & WOLOSKY LLP
Park Avenue Tower
65 East 55th Street
New York, New York 10022
(212) 451-2300
--------------
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
December 27, 2005
-----------------
(Date of Event Which Requires Filing of This Statement)
If the filing person has previously filed a statement on Schedule 13G
to report the acquisition that is the subject of this Schedule 13D, and is
filing this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the
following box / /.
NOTE. Schedules filed in paper format shall include a signed original
and five copies of the schedule, including all exhibits. SEE Rule 13d-7 for
other parties to whom copies are to be sent.
(Continued on following pages)
(Page 1 of 63 Pages)
-------------
(1) The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which would
alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not
be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, SEE the
NOTES).
---------------------- ----------------------
CUSIP No. 895436103 13D Page 2 of 63 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
WESTERN INVESTMENT LLC
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 3,140,515
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
3,140,515
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,140,515
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.8%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 895436103 13D Page 3 of 63 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
ARTHUR D. LIPSON
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO, PF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 3,141,516
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
3,141,516
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,141,516
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.8%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 895436103 13D Page 4 of 63 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
WESTERN INVESTMENT HEDGED PARTNERS L.P.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 1,608,515
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
1,608,515
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,608,515
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.5%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 895436103 13D Page 5 of 63 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
WESTERN INVESTMENT INSTITUTIONAL PARTNERS LLC
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY - 0 -(1)
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
- 0 -(1)
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
- 0 -(1)
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0%(1)
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) As of the date of the event requiring the filing of this Statement,
Western Investment Institutional Partners LLC owned 832,500 shares of
common stock of the Issuer, all of which were transferred to Western
Investment Activism Partners LLC on January 4, 2006. Western Investment
Institutional Partners LLC does not currently own any securities of the
Issuer.
---------------------- ----------------------
CUSIP No. 895436103 13D Page 6 of 63 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
WESTERN INVESTMENT ACTIVISM PARTNERS LLC
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 1,532,000
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
1,532,000
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,532,000
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.4%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 895436103 13D Page 7 of 63 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
BENCHMARK PLUS INSTITUTIONAL PARTNERS, L.L.C.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 1,371,250
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
1,371,250
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,371,250
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.2%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 895436103 13D Page 8 of 63 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
BENCHMARK PLUS PARTNERS, L.L.C.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 1,303,475
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
1,303,475
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,303,475
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.2%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 895436103 13D Page 9 of 63 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
BENCHMARK PLUS MANAGEMENT, L.L.C.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 1,371,250
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
1,371,250
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,371,250
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.2%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 895436103 13D Page 10 of 63 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
PARADIGM PARTNERS, N.W., INC.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
WASHINGTON
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 1,303,475
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
1,303,475
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,303,475
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.2%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 895436103 13D Page 11 of 63 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
SCOTT FRANZBLAU
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 1,371,250
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
1,371,250
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,371,250
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.2%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 895436103 13D Page 12 of 63 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
ROBERT FERGUSON
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 2,674,725
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
2,674,725
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,674,725
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.4%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 895436103 13D Page 13 of 63 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
MICHAEL DUNMIRE
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 2,674,725
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
2,674,725
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,674,725
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.4%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 895436103 13D Page 14 of 63 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
MATTHEW S. CROUSE
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY - 0 -
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
- 0 -
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
- 0 -
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 895436103 13D Page 15 of 63 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
PAUL DEROSA
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY - 0 -
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
- 0 -
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
- 0 -
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 895436103 13D Page 16 of 63 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
MARLENE A. PLUMLEE
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY - 0 -
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
- 0 -
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
- 0 -
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 895436103 13D Page 17 of 63 Pages
---------------------- ----------------------
The following constitutes the Schedule 13D filed by the undersigned
(the "Schedule 13D").
Item 1. SECURITY AND ISSUER.
This statement relates to shares of the Common Stock, par value $0.50
(the "Shares"), of Tri-Continental Corporation (the "Issuer"). The address of
the principal executive offices of the Issuer is 100 Park Avenue, New York, New
York 10017.
Item 2. IDENTITY AND BACKGROUND.
(a) This statement is filed by Western Investment LLC, a Delaware
limited liability company ("WILLC"), Arthur D. Lipson, Western Investment Hedged
Partners L.P., a Delaware limited partnership ("WIHP"), Western Investment
Institutional Partners LLC, a Delaware limited liability company ("WIIP"),
Western Investment Activism Partners LLC, a Delaware limited liability company
("WIAP"), Benchmark Plus Institutional Partners, L.L.C., a Delaware limited
liability company ("BPIP"), Benchmark Plus Partners, L.L.C, a Delaware limited
liability company ("BPP"), Benchmark Plus Management, L.L.C., a Delaware limited
liability company ("BPM"), Paradigm Partners, N.W., Inc., a Washington
corporation ("PPNW"), Scott Franzblau, Robert Ferguson, Michael Dunmire, Matthew
S. Crouse, Paul DeRosa and Marlene A. Plumlee. Each of the foregoing is referred
to as a "Reporting Person" and collectively as the "Reporting Persons." WILLC
provides recommendations from time to time to BPIP and BPP with respect to
purchases and sales of Shares of the Issuer, pursuant to an oral agreement
between WILLC and BPIP, and between WILLC and BPP. Each of WILLC, Mr. Lipson,
WIHP, WIIP and WIAP disclaim beneficial ownership of the Shares beneficially
owned by BPIP, BPP, BPM, PPNW, Mr. Franzblau, Mr. Ferguson and Mr. Dunmire. Each
of BPIP, BPM and Mr. Franzblau disclaim beneficial ownership of the Shares
beneficially owned by the other Reporting Persons. Each of BPP and PPNW disclaim
beneficial ownership of the Shares beneficially owned by the other Reporting
Persons. Each of Mr. Ferguson and Mr. Dunmire disclaim beneficial ownership of
the Shares beneficially owned by the other Reporting Persons, with the exception
of BPIP, BPM, BPP and PPNW. As of the close of business on January 4, 2006, WIIP
no longer beneficially owned any securities of the Issuer. Accordingly, WIIP
will no longer be deemed a Reporting Person after the filing of this Schedule
13D and will not be included in subsequent Schedules 13D filed by the remaining
Reporting Persons relating to the securities of the Issuer. With the exception
of WIIP, each of the Reporting Persons is party to that certain Joint Filing
Agreement as defined and described in Item 6. Accordingly, the Reporting Persons
are hereby filing a joint Schedule 13D.
WILLC has sole voting and investment power over WIHP's, WIIP's and
WIAP's security holdings and Mr. Lipson, in his role as the managing member of
WILLC, controls WILLC's voting and investment decisions. BPM is the managing
member of BPIP and Messrs. Franzblau, Ferguson and Dunmire in their role as
managing members of BPM, have sole voting and investment control over BPIP's
security holdings. PPNW is the managing member of BPP and Messrs. Ferguson and
Dunmire, in their role as the sole officers and directors of BPP, have sole
voting and investment control over BPP's security holdings. Neither WILLC, Mr.
---------------------- ----------------------
CUSIP No. 895436103 13D Page 18 of 63 Pages
---------------------- ----------------------
Lipson, WIHP, WIIP nor WIAP has voting or dispositive control over the Shares
beneficially owned by BPIP, BPP, BPM, PPNW, Mr. Franzblau, Mr. Ferguson or Mr.
Dunmire. Neither BPIP, BPM nor Mr. Franzblau has voting or dispositive control
over the Shares beneficially owned by the other Reporting Persons. Neither BPP
nor PPNW has voting or dispositive control over the Shares beneficially owned by
the other Reporting Persons. Neither Mr. Ferguson nor Mr. Dunmire has voting or
dispositive control over the Shares beneficially owned by WILLC, WIHP, WIAP or
Mr. Lipson.
(b) The principal business address of WILLC, WIHP, WIIP, WIAP, Mr.
Lipson and Mr. Crouse is 2855 East Cottonwood Parkway, Suite 110, Salt Lake
City, UT 84121.
The principal business address of BPIP, BPM, BPP, PPNW, Mr. Franzblau,
Mr. Ferguson and Mr. Dunmire is 820 A Street, Suite 700, Tacoma, WA 98402.
The principal business address of Mr. DeRosa is c/o MT Lucas, LLC, 730
Fifth Avenue, New York, NY 10019.
The principal business address of Dr. Plumlee is c/o University of
Utah, School of Accounting and Information Systems, 1645 E. Campus Center Drive,
Salt Lake City, UT 84112.
(c) The principal business of WILLC is acting as the general partner
and managing member, as the case may be, of WIHP, WIIP and WIAP. The principal
occupation of Mr. Lipson is acting as managing member of WILLC. The principal
business of WIHP, WIIP and WIAP is acquiring, holding and disposing of
investments in various companies.
The principal business of BPM is acting as the managing member of
BPIP. The principal business of BPIP is acquiring, holding and disposing of
investments in various companies.
The principal business of PPNW is acting as the managing member of
BPP. The principal business of BPP is acquiring, holding and disposing of
investments in various companies.
The principal occupation of Scott Franzblau is acting as a managing
member of BPM. The principal occupation of Robert Ferguson is acting as a
managing member of BPM and as the President and director of PPNW. The principal
occupation of Michael Dunmire is acting as a managing member of BPM and as
Chairman of the Board of PPNW.
The principal occupation of Mr. Crouse is serving as a portfolio
manager at WILLC.
The principal occupation of Mr. DeRosa is serving as a principal of
Mt. Lucas Management Corporation, an asset management company.
The principal occupation of Dr. Plumlee is serving as a Professor of
Accounting at the University of Utah.
---------------------- ----------------------
CUSIP No. 895436103 13D Page 19 of 63 Pages
---------------------- ----------------------
(d) No Reporting Person has, during the last five years, been
convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors).
(e) No Reporting Person has, during the last five years, been party to
a civil proceeding of a judicial or administrative body of competent
jurisdiction and as a result of such proceeding was or is subject to a judgment,
decree or final order enjoining future violations of, or prohibiting or
mandating activities subject to, federal or state securities laws or finding any
violation with respect to such laws.
(f) Mr. Lipson, Mr. Franzblau, Mr. Ferguson, Mr. Dunmire, Mr. Crouse,
Mr. DeRosa and Dr. Plumlee are citizens of the United States of America.
Item 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
The aggregate purchase price of the 3,140,515 Shares beneficially
owned by WILLC is approximately $54,934,748, including brokerage commissions.
The Shares beneficially owned by WILLC were acquired with the working capital of
each of WIHP and WIAP. The aggregate purchase price of the 1,001 Shares owned
directly by Mr. Lipson is approximately $18,785, including brokerage
commissions. The Shares owned directly by Mr. Lipson were acquired with personal
funds. The aggregate purchase price of the 1,371,250 Shares beneficially owned
by BPM is approximately $24,585,926, including brokerage commissions. The Shares
beneficially owned by BPM were acquired with the working capital of BPIP. The
aggregate purchase price of the 1,303,475 Shares beneficially owned by PPNW is
approximately $22,906,458, including brokerage commissions. The Shares
beneficially owned by PPNW were acquired with the working capital of BPP. As of
the date of the event requiring the filing of this Statement, WIIP owned 832,500
Shares, all of which were transferred to WIAP on January 4, 2006. WIIP does not
currently own any Shares.
Item 4. PURPOSE OF TRANSACTION.
The Reporting Persons purchased the Shares based on the Reporting
Persons' belief that the Shares, when purchased, were undervalued and
represented an attractive investment opportunity. Depending upon overall market
conditions, other investment opportunities available to the Reporting Persons,
and the availability of Shares at prices that would make the purchase of
additional Shares desirable, the Reporting Persons may endeavor to increase
their position in the Issuer through, among other things, the purchase of Shares
on the open market or in private transactions or otherwise, on such terms and at
such times as the Reporting Persons may deem advisable.
The Reporting Persons are concerned by the persistent discount to net
asset value at which the Shares of the Issuer have been trading. The Reporting
Persons believe that the Board of Directors of the Issuer has not been taking
appropriate action to cause the discount to net asset value to be eliminated or
reduced. Accordingly, on December 30, 2005, WIHP and Mr. Lipson submitted a
letter (the "Nomination Letter") to the Issuer nominating a slate of four
nominees comprised of Arthur D. Lipson, Matthew S. Crouse, Paul DeRosa and
Marlene A. Plumlee (collectively, the "Nominees") for election to the Board of
---------------------- ----------------------
CUSIP No. 895436103 13D Page 20 of 63 Pages
---------------------- ----------------------
Directors of the Issuer at the 2006 annual meeting of shareholders (the "Annual
Meeting"). The Reporting Persons intend to engage in discussions with management
and the Board of the Issuer and other shareholders about possible solutions to
the discount to net asset value at which the Shares have been trading. The
Reporting Persons reserve the right to take any other action they deem
appropriate related to this issue.
No Reporting Person has any present plan or proposal which would
relate to or result in any of the matters set forth in subparagraphs (a) - (j)
of Item 4 of Schedule 13D except as set forth herein or such as would occur upon
completion of any of the actions discussed above. The Reporting Persons intend
to review their investment in the Issuer on a continuing basis and engage in
discussions with management and the Board of Directors of the Issuer concerning
the business, operations and future plans of the Issuer. Depending on various
factors including, without limitation, the Issuer's financial position and
investment strategy, the price levels of the Shares, conditions in the
securities markets and general economic and industry conditions, the Reporting
Persons may in the future take such actions with respect to their investment in
the Issuer as they deem appropriate including, without limitation, seeking
additional Board representation, making proposals to the Issuer concerning
changes to the capitalization, ownership structure or operations of the Issuer,
purchasing additional Shares, selling some or all of their Shares, engaging in
short selling of or any hedging or similar transaction with respect to the
Shares or changing their intention with respect to any and all matters referred
to in Item 4.
Item 5. INTEREST IN SECURITIES OF THE ISSUER.
(a) The aggregate percentage of Shares reported owned by each person
named herein in based upon 110,769,242 Shares outstanding as of June 30, 2005,
as reported in the Issuer's Form N-CSRS filed with the Securities and Exchange
Commission on September 8, 2005.
As of the close of business on January 5, 2006, WIHP, WIAP, BPIP and
BPP beneficially owned 1,608,515, 1,532,000, 1,371,250 and 1,303,475 Shares,
respectively, constituting approximately 1.5%, 1.4%, 1.2% and 1.2%,
respectively, of the Shares outstanding. WILLC beneficially owned 3,140,515
Shares, constituting approximately 2.8% of the Shares outstanding. Mr. Lipson
beneficially owned 3,141,516 Shares, constituting approximately 2.8% of the
Shares outstanding. Mr. Franzblau beneficially owned 1,371,250 Shares,
constituting approximately 1.2% of the Shares outstanding. Messrs. Ferguson and
Dunmire beneficially owned 2,674,725 Shares, constituting approximately 2.4% of
the Shares outstanding. As of the date of the event requiring the filing of this
Statement, WIIP owned 832,500 Shares, all of which were transferred to WIAP on
January 4, 2006. WIIP does not currently own any Shares.
As the general partner or managing member, as the case may be, of WIHP
and WIAP, WILLC may be deemed to beneficially own the 3,140,515 Shares owned in
the aggregate by WIHP and WIAP. As the managing member of WILLC, Mr. Lipson may
be deemed to beneficially own the 3,140,515 Shares beneficially owned by WILLC,
in addition to the 1,001 Shares owned directly by Mr. Lipson. As the managing
member of BPIP, BPM may be deemed to beneficially own the 1,371,250 Shares owned
by BPIP. As the managing members of BPM, Messrs. Franzblau, Ferguson and Dunmire
---------------------- ----------------------
CUSIP No. 895436103 13D Page 21 of 63 Pages
---------------------- ----------------------
may be deemed to beneficially own the 1,371,250 Shares beneficially owned by
BPM. As the managing member of BPP, PPNW may be deemed to beneficially own the
1,303,475 Shares owned by BPP. As the sole officers and directors of PPNW,
Messrs. Ferguson and Dunmire may be deemed to beneficially own the 1,303,475
Shares beneficially owned by PPNW.
Currently, Mr. Crouse, Mr. DeRosa and Dr. Plumlee do not beneficially
own any securities of the Issuer.
(b) Each of WILLC and Mr. Lipson is deemed to have sole voting and
dispositive power over the Shares reported as beneficially owned by WIHP and
WIAP by virtue of their respective positions as described in paragraph (a).
Neither WILLC, Mr. Lipson, WIHP, WIIP nor WIAP has voting or dispositive control
over the Shares beneficially owned by BPIP, BPP, BPM, PPNW, Mr. Franzblau, Mr.
Ferguson or Mr. Dunmire.
Each of BPM, Mr. Franzblau, Mr. Ferguson and Mr. Dunmire is deemed to
have sole voting and dispositive power over the Shares reported as beneficially
owned owned by BPIP by virtue of their respective positions as described in
paragraph (a). Neither BPIP, BPM nor Mr. Franzblau has voting or dispositive
control over the Shares beneficially owned by the other Reporting Persons.
Neither Mr. Ferguson nor Mr. Dunmire has voting or dispositive control over the
Shares beneficially owned by the other Reporting Persons, with the exception of
BPP and PPNW.
Each of PPNW, Mr. Ferguson and Mr. Dunmire is deemed to have sole
voting and dispositive power over the Shares reported as beneficially owned by
BPP by virtue of their respective positions as described in paragraph (a).
Neither BPP nor PPNW has voting or dispositive control over the Shares
beneficially owned by the other Reporting Persons. Neither Mr. Ferguson nor Mr.
Dunmire has voting or dispositive control over the Shares beneficially owned by
the other Reporting Persons, with the exception of BPIP and BPM.
(c) Exhibit A to the Nomination Letter attached as an exhibit hereto
contains all transactions in the Shares by the Reporting Persons effected prior
to delivery of the Nomination Letter. Schedule A attached hereto contains all
transactions in the Shares by the Reporting Persons effected since the delivery
of the Nomination Letter. Except where otherwise noted, all of such transactions
were effected in the open market.
(d) No person other than the Reporting Persons is known to have the
right to receive, or the power to direct the receipt of dividends from, or
proceeds from the sale of, the Shares.
(e) Not applicable.
---------------------- ----------------------
CUSIP No. 895436103 13D Page 22 of 63 Pages
---------------------- ----------------------
Item 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER.
On January 6, 2006, WILLC, WIHP, WIAP, BPIP, BPM, BPP, PPNW, Mr.
Franzblau, Mr. Ferguson, Mr. Dunmire and each of the Nominees (collectively, the
"Group") entered into a Joint Filing and Solicitation Agreement (the "Joint
Filing Agreement") in which, among other things, (a) the parties agreed to the
joint filing on behalf of each of them of statements on Schedule 13D with
respect to the securities of the Issuer to the extent required by applicable
law, (b) the parties agreed to solicit proxies or written consents for the
election of the Nominees, or any other person(s) nominated by WIHP and Mr.
Lipson, to the Issuer's Board at the Annual Meeting (the "Solicitation"), and
(c) WILLC agreed to bear all expenses incurred in connection with the Group's
activities, including approved expenses incurred by any of the parties in
connection with the Solicitation, subject to certain limitations. The Joint
Filing Agreement is attached as an exhibit hereto and is incorporated herein by
reference.
Other than as described herein, there are no contracts, arrangements,
understandings or relationships among the Reporting Persons, or between the
Reporting Persons and any other person, with respect to the securities of the
Issuer.
Item 7. MATERIAL TO BE FILED AS EXHIBITS.
1. Nomination Letter from Western Investment Hedged Partners, L.P.
and Arthur D. Lipson to Tri-Continental Corporation, dated
December 30, 2005.
2. Joint Filing and Solicitation Agreement by and among Western
Investment LLC, Arthur D. Lipson, Western Investment Hedged
Partners L.P., Western Investment Activism Partners LLC,
Benchmark Plus Institutional Partners, L.L.C., Benchmark Plus
Partners, L.L.C, Benchmark Plus Management, L.L.C., Paradigm
Partners, N.W., Inc., Scott Franzblau, Robert Ferguson, Michael
Dunmire, Matthew S. Crouse, Paul DeRosa and Marlene A. Plumlee,
dated January 6, 2006.
---------------------- ----------------------
CUSIP No. 895436103 13D Page 23 of 63 Pages
---------------------- ----------------------
SIGNATURES
After reasonable inquiry and to the best of his knowledge and belief,
each of the undersigned certifies that the information set forth in this
statement is true, complete and correct.
Dated: January 6, 2006 WESTERN INVESTMENT LLC
By: /s/ Arthur D. Lipson
-----------------------------------
Name: Arthur D. Lipson
Title: Sole Member
WESTERN INVESTMENT HEDGED PARTNERS L.P.
By: Western Investment LLC,
Its General Partner
By: /s/ Arthur D. Lipson
-----------------------------------
Name: Arthur D. Lipson
Title: Managing Member
WESTERN INVESTMENT INSTITUTIONAL PARTNERS LLC
By: Western Investment LLC,
Its Managing Member
By: /s/ Arthur D. Lipson
-----------------------------------
Name: Arthur D. Lipson
Title: Managing Member
WESTERN INVESTMENT ACTIVISM PARTNERS LLC
By: Western Investment LLC,
Its Managing Member
By: /s/ Arthur D. Lipson
-----------------------------------
Name: Arthur D. Lipson
Title: Managing Member
---------------------- ----------------------
CUSIP No. 895436103 13D Page 24 of 63 Pages
---------------------- ----------------------
BENCHMARK PLUS INSTITUTIONAL PARTNERS, L.L.C.
By: Benchmark Plus Management, L.L.C.,
Its Managing Member
By: /s/ Scott Franzblau
-----------------------------------
Name: Scott Franzblau
Title: Managing Member
By: /s/ Robert Ferguson
------------------------------------
Name: Robert Ferguson
Title: Managing Member
By: /s/ Michael Dunmire
------------------------------------
Name: Michael Dunmire
Title: Managing Member
BENCHMARK PLUS MANAGEMENT, L.L.C.
By: /s/ Scott Franzblau
-----------------------------------
Name: Scott Franzblau
Title: Managing Member
By: /s/ Robert Ferguson
------------------------------------
Name: Robert Ferguson
Title: Managing Member
By: /s/ Michael Dunmire
------------------------------------
Name: Michael Dunmire
Title: Managing Member
BENCHMARK PLUS PARTNERS, L.L.C.
By: Paradigm Partners, N.W., Inc.
Its Managing Member
By: /s/ Robert Ferguson
------------------------------------
Name: Robert Ferguson
Title: President
By: /s/ Michael Dunmire
------------------------------------
Name: Michael Dunmire
Title: Chairman of the Board
---------------------- ----------------------
CUSIP No. 895436103 13D Page 25 of 63 Pages
---------------------- ----------------------
PARADIGM PARTNERS, N.W., INC.
By: /s/ Robert Ferguson
------------------------------------
Name: Robert Ferguson
Title: President
By: /s/ Michael Dunmire
------------------------------------
Name: Michael Dunmire
Title: Chairman of the Board
/s/ Arthur D. Lipson
--------------------------------------
ARTHUR D. LIPSON
/s/ Scott Franzblau
---------------------------------------
SCOTT FRANZBLAU
/s/ Robert Ferguson
---------------------------------------
ROBERT FERGUSON
/s/ Michael Dunmire
---------------------------------------
MICHAEL DUNMIRE
/s/ Matthew S. Crouse
---------------------------------------
MATTHEW S. CROUSE
/s/ Paul DeRosa
---------------------------------------
Paul Derosa
/s/ Marlene A. Plumlee
---------------------------------------
MARLENE A. PLUMLEE
---------------------- ----------------------
CUSIP No. 895436103 13D Page 26 of 63 Pages
---------------------- ----------------------
SCHEDULE A
TRANSACTIONS IN THE COMMON STOCK OF TRI-CONTINENTAL SINCE
DELIVERY OF THE NOMINATION LETTER
Transaction Quantity Date Price ($)
----------- -------- ---- ---------
WESTERN INVESTMENT INSTITUTIONAL PARTNERS LLC
Sell 116,300 01/04/06 18.8591
Sell 716,200 01/04/06 18.8593
WESTERN INVESTMENT ACTIVISM PARTNERS LLC
Buy 198,000 01/03/06 18.6467
Buy 832,500 01/04/06 18.8603
Buy 52,500 01/04/06 18.8811
Buy 14,300 01/05/06 18.9374
Sell 4,200 01/05/06 18.9800
---------------------- ----------------------
CUSIP No. 895436103 13D Page 27 of 63 Pages
---------------------- ----------------------
EXHIBIT INDEX
Exhibit Page
------- ----
1. Nomination Letter from Western Investment Hedged Partners, 28 to 58
L.P. and Arthur D. Lipson to Tri-Continental Corporation,
dated December 30, 2005.
2. Joint Filing and Solicitation Agreement by and among Western 59 to 63
Investment LLC, Arthur D. Lipson, Western Investment Hedged
Partners L.P., Western Investment Activism Partners LLC,
Benchmark Plus Institutional Partners, L.L.C., Benchmark
Plus Partners, L.L.C, Benchmark Plus Management, L.L.C.,
Paradigm Partners, N.W., Inc., Scott Franzblau, Robert
Ferguson, Michael Dunmire, Matthew S. Crouse, Paul DeRosa
and Marlene A. Plumlee, dated January 6, 2006.
---------------------- ----------------------
CUSIP No. 895436103 13D Page 28 of 63 Pages
---------------------- ----------------------
WESTERN INVESTMENT HEDGED ARTHUR D. LIPSON
PARTNERS, L.P. C/O WESTERN INVESTMENT LLC
2855 EAST COTTONWOOD PARKWAY, SUITE 110 2855 EAST COTTONWOOD PARKWAY, SUITE 110
SALT LAKE CITY, UTAH 84121 SALT LAKE CITY, UTAH 84121
December 30, 2005
BY HAND AND FEDERAL EXPRESS
Tri-Continental Corporation
100 Park Avenue
New York, New York 10017
Attn: Corporate Secretary
Re: NOTICE OF INTENTION TO NOMINATE INDIVIDUALS FOR ELECTION AS DIRECTORS AT
THE 2006 ANNUAL MEETING OF STOCKHOLDERS OF TRI-CONTINENTAL CORPORATION
Dear Sir:
This letter shall serve to satisfy the advance notice requirements of
Article II, Section 10 of the Amended and Restated Bylaws (the "Bylaws") of
Tri-Continental Corporation ("Tri-Continental") as to the nomination by each of
Western Investment Hedged Partners, L.P., a Delaware limited partnership
("Western Investment"), and Arthur D. Lipson of four (4) nominees for election
to the Board of Directors of Tri-Continental (the "Tri-Continental Board") at
the 2006 annual meeting of stockholders of Tri-Continental, or any other meeting
of stockholders held in lieu thereof, and any adjournments, postponements,
reschedulings or continuations thereof (the "2006 Annual Meeting").
This letter and all Exhibits attached hereto are collectively referred to
as the "Notice." Western Investment is the beneficial owner of 1,608,515 shares
of common stock, $.50 par value per share (the "Common Stock"), of
Tri-Continental, 1,000 shares of which are held of record by Western Investment.
Arthur D. Lipson is the beneficial owner of 2,880,916 shares of Common Stock,
1,000 shares of which are held of record by Arthur D. Lipson. Western
Investment's address, as believed to appear on Tri-Continental's books, is 2855
East Cottonwood Parkway, Suite 110, Salt Lake City, Utah 84121. Arthur D.
Lipson's address, as believed to appear on Tri-Continental's books, is P.O. Box
71869, Salt Lake City, Utah 84171. Through this Notice, Western Investment and
Arthur D. Lipson hereby nominate and notify you of their intent to nominate
Arthur D. Lipson, Matthew S. Crouse, Paul DeRosa and Marlene A. Plumlee as
nominees (the "Nominees") to be elected to the Tri-Continental Board at the 2006
Annual Meeting. Western Investment and Arthur D. Lipson believe that the terms
of four (4) directors currently serving on the Tri-Continental Board expire at
the 2006 Annual Meeting. To the extent there are in excess of four (4) vacancies
on the Tri-Continental Board to be filled by election at the 2006 Annual Meeting
or Tri-Continental increases the size of the Tri-Continental Board above its
existing size, Western Investment and Arthur D. Lipson reserve the right to
---------------------- ----------------------
CUSIP No. 895436103 13D Page 29 of 63 Pages
---------------------- ----------------------
nominate additional nominees to be elected to the Tri-Continental Board at the
2006 Annual Meeting. Any additional nominations made pursuant to the preceding
sentence are without prejudice to the position of Western Investment and Arthur
D. Lipson that any attempt by Tri-Continental to increase the size of the
Tri-Continental Board or to reconstitute or reconfigure the classes on which the
current directors serve would constitute an unlawful manipulation of
Tri-Continental's corporate machinery. If this Notice shall be deemed for any
reason to be ineffective with respect to the nomination of the Nominees by
either Western Investment or Arthur D. Lipson, this Notice shall continue to be
effective with respect to the nomination of the Nominees by the other party.
Additionally, if this Notice shall be deemed for any reason to be ineffective
with respect to the nomination of any of the Nominees at the 2006 Annual
Meeting, or if any individual Nominee shall be unable to serve for any reason,
this Notice shall continue to be effective with respect to the remaining
Nominee(s) and as to any replacement Nominee(s) selected by Western Investment
and Arthur D. Lipson.
The information concerning the Nominees required by Article II, Section
10(a) of the Bylaws is set forth below:
(i) NAME, AGE, BUSINESS ADDRESS AND RESIDENCE ADDRESS OF THE NOMINEES:
Name and Age Business Address Residence Address
------------ ---------------- -----------------
Arthur D. Lipson c/o Western Investment LLC 8011 S. Dazzling View Circle
(Age 62) 2855 E. Cottonwood Parkway, Suite 110 Salt Lake City, UT 84121
Salt Lake City, UT 84121
Matthew S. Crouse c/o Western Investment LLC 3156 Old Ridge Circle
(Age 34) 2855 E. Cottonwood Parkway, Suite 110 Salt Lake City, UT 84121
Salt Lake City, UT 84121
Paul DeRosa c/o MT Lucas, LLC 71 Forest Road
(Age 64) 730 Fifth Avenue Tenafly, NJ 70670
New York, NY 10019
Marlene A. Plumlee c/o University of Utah 1650 East Laird Avenue
(Age 48) School of Accounting and Information Salt Lake City, UT 84105
Systems
1645 E. Campus Center Drive
Salt Lake City, UT 84112
---------------------- ----------------------
CUSIP No. 895436103 13D Page 30 of 63 Pages
---------------------- ----------------------
(ii) CLASS, SERIES AND NUMBER OF SHARES OF STOCK OF TRI-CONTINENTAL THAT ARE
BENEFICIALLY OWNED BY THE NOMINEES:
NAME CLASS/SERIES BENEFICIAL OWNERSHIP
Arthur D. Lipson Common Stock, Mr. Lipson beneficially owns 2,880,916
$.50 par value shares of Common Stock consisting of 1,001
shares held directly by Mr. Lipson and
2,879,915 shares beneficially owned by
Western Investment LLC ("WILLC"). Mr.
Lipson may be deemed to beneficially own
the 2,879,915 shares of Common Stock
beneficially owned by WILLC by virtue of
his ability to vote and dispose of such
shares as the sole managing member of WILLC
Matthew S. Crouse N/A None
Paul DeRosa N/A None
Marlene A. Plumlee N/A None
(iii) THE DATE SUCH SHARES WERE ACQUIRED AND THE INVESTMENT INTENT OF SUCH
ACQUISITION:
Name Date Acquired Investment Intent
---- ------------- -----------------
Arthur D. Lipson The date of purchase and number of shares Mr. Lipson purchased the shares based on his
acquired by Mr. Lipson and the Stockholder belief that the shares were undervalued at
Associated Persons (as defined in the Bylaws) current market prices and represented an
listed in Section (v) of this Notice are set attractive investment opportunity. In addition
forth in EXHIBIT A. Mr.Lipson may be deemed to to the foregoing, Mr. Lipson reserves the right
beneficially own the shares beneficially owned by to take any and all action permitted by law with
WILLC but does not have the power to vote or respect to his investment in Tri-Continental.
dispose, and disclaims beneficial ownership of,
the shares beneficially owned by BPIP (as defined
below) and BPP (as defined below).
---------------------- ----------------------
CUSIP No. 895436103 13D Page 31 of 63 Pages
---------------------- ----------------------
(iv) WHETHER THE STOCKHOLDERS GIVING THE NOTICE BELIEVE ANY NOMINEE IS, OR
IS NOT, AN "INTERESTED PERSON" OF TRI-CONTINENTAL, AS DEFINED IN THE
1940 ACT, AND INFORMATION REGARDING SUCH INDIVIDUAL THAT IS SUFFICIENT,
IN THE DISCRETION OF THE BOARD OF DIRECTORS OR ANY COMMITTEE THEREOF OR
ANY AUTHORIZED OFFICER OF TRI-CONTINENTAL, TO MAKE SUCH DETERMINATION:
Western Investment and Arthur D. Lipson do not believe any Nominee is
an "interested person" of Tri-Continental, as defined in the 1940 Act.
Western Investment and Arthur D. Lipson do not believe there is any
relevant information other than the information already set forth
herein regarding any of the Nominees that would allow the
Tri-Continental Board or any committee thereof or any authorized
officer to make a determination to the contrary.
(V) CLASS, SERIES AND NUMBER OF SHARES OF STOCK OF TRI-CONTINENTAL WHICH
ARE OWNED BY THE STOCKHOLDERS GIVING THE NOTICE AND STOCKHOLDER
ASSOCIATED PERSONS (AS DEFINED IN THE BYLAWS), AND THE NOMINEE HOLDER
FOR, AND NUMBER OF, SHARES OWNED BENEFICIALLY BUT NOT OF RECORD BY SUCH
STOCKHOLDERS AND BY ANY SUCH STOCKHOLDER ASSOCIATED PERSONS:
Name Class / Series Ownership / Nominee Holder
---- -------------- --------------------------
Western Investment Hedged Common Stock, 1,000 shares owned of record
Partners, L.P. $.50 par value
1,607,515 shares owned beneficially
(owned of record by Cede & Co.)
Western Investment Institutional Common Stock, 832,500 shares owned beneficially
Partners LLC ("WIIP") $.50 par value (owned of record by Cede & Co.)
Western Investment Activism Common Stock, 438,900 shares owned beneficially
Partners LLC ("WIAP") $.50 par value (owned of record by Cede & Co.)
Western Investment LLC Common Stock, As the general partner or managing member, as
$.50 par value the par value case may be, of Western
Investment, WIIP and WIAP, WILLC may be deemed
to beneficially own the 2,879,915 shares owned
in the aggregate by Western Investment, WIIP
and WIAP, as set forth in further detail in
this Section (v).
Arthur D. Lipson Common Stock, 1,000 shares owned of record
$.50 par value
1 share owned beneficially
(owned of record by Cede & Co.)
---------------------- ----------------------
CUSIP No. 895436103 13D Page 32 of 63 Pages
---------------------- ----------------------
Mr. Lipson may also be deemed to beneficially
own the 2,879,915 shares of Common Stock
beneficially owned by WILLC by virtue of his
ability to vote and dispose of such shares as
the sole managing member of WILLC.
Benchmark Plus Institutional Common Stock, 1,371,250 shares owned beneficially
Partners, L.L.C. ("BPIP") $.50 par value (owned of record by Cede & Co.)
Benchmark Plus Management, Common Stock, BPM may be deemed to beneficially own the
L.L.C. ("BPM") $.50 par value 1,371,250 shares of Common Stock beneficially
owned by BPIP by virtue of its ability to vote
and dispose of such shares as the managing
member of BPIP.
Benchmark Plus Partners, L.L.C. Common Stock, 1,303,475 shares owned beneficially
("BPP") $.50 par value (owned of record by Cede & Co.)
Paradigm Partners, N.W., Inc. Common Stock, PPNW may be deemed to beneficially own the
("PPNW") $.50 par value 1,303,475 shares of Common Stock beneficially
owned by BPP by virtue of its ability to vote
and dispose of such shares as the managing
member of BPP.
Scott Franzblau Common Stock, Mr. Franzblau may be deemed to beneficially own
$.50 par value the 1,371,250 shares of Common Stock
beneficially owned by BPIP by virtue of his
ability to vote and dispose of such shares as a
managing member of BPM, which in turn is the
managing member of BPIP.
Robert Ferguson Common Stock, Mr. Ferguson may be deemed to beneficially own
$.50 par value the 1,371,250 shares of Common Stock
beneficially owned by BPIP by virtue of his
ability to vote and dispose of such shares as a
managing member of BPM, which in turn is the
managing member of BPIP.
---------------------- ----------------------
CUSIP No. 895436103 13D Page 33 of 63 Pages
---------------------- ----------------------
Mr. Ferguson may also be deemed to beneficially
own the 1,303,475 shares of Common Stock
beneficially owned by BPP by virtue of his
ability to vote and dispose of such shares as a
principal of PPNW, which in turn is the
managing member of BPP.
Michael Dunmire Common Stock, Mr. Dunmire may be deemed to beneficially own
$.50 par value the 1,371,250 shares of Common Stock
beneficially owned by BPIP by virtue of his
ability to vote and dispose of such shares as a
managing member of BPM, which in turn is the
managing member of BPIP.
Mr. Dunmire may also be deemed to beneficially
own the 1,303,475 shares of Common Stock
beneficially owned by BPP by virtue of his
ability to vote and dispose of such shares as a
principal of PPNW, which in turn is the
managing member of BPP.
(vi) THE NAME AND ADDRESS, AS BELIEVED TO APPEAR ON TRI-CONTINENTAL'S STOCK
LEDGER, AND CURRENT NAME AND ADDRESS, IF DIFFERENT, OF THE STOCKHOLDERS
GIVING THE NOTICE AND STOCKHOLDER ASSOCIATED PERSONS (AS DEFINED IN THE
BYLAWS) WHO CURRENTLY BENEFICIALLY OWN SHARES:
(a) STOCKHOLDERS GIVING THE NOTICE NAME / ADDRESS ON STOCK LEDGER
Western Investment Hedged Partners, L.P. Same
2855 East Cottonwood Parkway, Suite 110
Salt Lake City, Utah 84121
Arthur D. Lipson Arthur D. Lipson
c/o Western Investment LLC P.O. Box 71869
2855 East Cottonwood Parkway, Suite 110 Salt Lake City, Utah 84171
Salt Lake City, Utah 84121
(b) STOCKHOLDER ASSOCIATED PERSONS
Western Investment Institutional Partners LLC N/A
2855 East Cottonwood Parkway, Suite 110
Salt Lake City, Utah 84121
Western Investment Activism Partners LLC N/A
2855 East Cottonwood Parkway, Suite 110
Salt Lake City, Utah 84121
---------------------- ----------------------
CUSIP No. 895436103 13D Page 34 of 63 Pages
---------------------- ----------------------
Western Investment LLC N/A
2855 East Cottonwood Parkway, Suite 110
Salt Lake City, Utah 84121
Benchmark Plus Institutional Partners, L.L.C. N/A
820 A Street, Suite 700
Tacoma, Washington 98402
Benchmark Plus Management, L.L.C. N/A
820 A Street, Suite 700
Tacoma, Washington 98402
Benchmark Plus Partners, L.L.C. N/A
820 A Street, Suite 700
Tacoma, Washington 98402
Paradigm Partners, N.W., Inc. N/A
820 A Street, Suite 700
Tacoma, Washington 98402
Scott Franzblau N/A
820 A Street, Suite 700
Tacoma, Washington 98402
Robert Ferguson N/A
820 A Street, Suite 700
Tacoma, Washington 98402
Michael Dunmire N/A
820 A Street, Suite 700
Tacoma, Washington 98402
(vii) TO THE EXTENT KNOWN BY THE STOCKHOLDERS GIVING THE NOTICE, THE NAME AND
ADDRESS OF ANY OTHER STOCKHOLDER SUPPORTING THE NOMINEES FOR ELECTION AS
A DIRECTOR ON THE DATE OF THIS NOTICE:
As of the date hereof, Western Investment and Arthur D. Lipson are not
aware of any other stockholder supporting the Nominees for election at
the 2006 Annual Meeting other than the persons and entities named in this
Notice.
(viii) ALL OTHER INFORMATION RELATING TO THE NOMINEES THAT IS REQUIRED TO BE
DISCLOSED IN SOLICITATIONS OF PROXIES FOR ELECTION OF DIRECTORS IN AN
ELECTION CONTEST, OR IS OTHERWISE REQUIRED, IN EACH CASE PURSUANT TO
REGULATION 14A UNDER THE EXCHANGE ACT AND THE RULES THEREUNDER:
---------------------- ----------------------
CUSIP No. 895436103 13D Page 35 of 63 Pages
---------------------- ----------------------
ARTHUR D. LIPSON has been the sole managing member of WILLC, a Delaware
limited liability company that acts as the general partner and managing
member, as the case may be, of Western Investment, WIAP and WIIP, since
May 1997. The principal business of Western Investment, WIAP and WIIP is
acquiring, holding and disposing of investments in various companies. Mr.
Lipson received a Masters of Science from Columbia University and a
Bachelor of Science from the California Institute of Technology.
MATTHEW S. CROUSE has served as a portfolio manager at WILLC since
February 2003. From January 2002 to January 2003, he served as the
Manager of Market Risk Control for Duke Energy, a utility company with an
affiliated real estate operation. From June 2000 to December 2001, he
served as Manager/Director of Research for The New Power Company, a
retail energy supplier. Mr. Crouse received a Ph.D. in Electrical
Engineering from Rice University and a Masters of Business Administration
from the University of Houston.
PAUL DEROSA has been a principal of Mt. Lucas Management Corporation, an
asset management company, since November 1998. From March 1988 to July
1995, he served as Managing Director of Eastbridge Capital Inc., a bond
trading company. From July 1986 to March 1988, he served as Senior Vice
President of the Capital Markets Division of E.F. Hutton Inc. Prior to
such time he served in various capacities with Citibank NA, including as
a Division Head and Vice President of Citicorp Investment Bank. Mr. De
Rosa is currently a director of Intervest Bancshares Corporation, a
financial holding company. Mr. DeRosa received a Ph.D. in Economics from
Columbia University.
MARLENE A. PLUMLEE has been a Professor of Accounting at the University
of Utah since 1997. Dr. Plumlee received a Ph.D. in Business
Administration (Accounting Emphasis) from the University of Michigan.
For information regarding purchases and sales during the past two years
of securities of Tri-Continental by Mr. Lipson, including purchases and
sales by Western Investment, WIAP and WIIP, as well as Western Investment
Total Return Fund Ltd. ("WITR"), an entity controlled by Mr. Lipson, of
securities that may be or were deemed to be beneficially owned by Mr.
Lipson, please see EXHIBIT A. Mr. Crouse, Mr. DeRosa and Dr. Plumlee have
not purchased or sold any securities of Tri-Continental during the past
two years. WITR does not currently beneficially own any securities of
Tri-Continental.
Other than as stated above, there are no arrangements or understandings
between Western Investment and Arthur D. Lipson and each Nominee or any
other person or persons pursuant to which the nominations described
herein are to be made, other than the consents by the Nominees to be
named as a nominee in this Notice, to be named as a nominee in any proxy
statement filed by Western Investment and/or Arthur D. Lipson in
connection with the 2006 Annual Meeting and to serve as a director of
Tri-Continental, if so elected. Such consents are attached hereto as
EXHIBIT B.
---------------------- ----------------------
CUSIP No. 895436103 13D Page 36 of 63 Pages
---------------------- ----------------------
Except as set forth in this Notice (including the Exhibits hereto), (i)
during the past 10 years, no Nominee has been convicted in a criminal
proceeding (excluding traffic violations or similar misdemeanors); (ii)
no Nominee directly or indirectly beneficially owns any securities of
Tri-Continental; (iii) no Nominee owns any securities of Tri-Continental
which are owned of record but not beneficially; (iv) no Nominee has
purchased or sold any securities of Tri-Continental during the past two
years; (v) no part of the purchase price or market value of the
securities of Tri-Continental owned by any Nominee is represented by
funds borrowed or otherwise obtained for the purpose of acquiring or
holding such securities; (vi) no Nominee is, or within the past year was,
a party to any contract, arrangements or understandings with any person
with respect to any securities of Tri-Continental, including, but not
limited to, joint ventures, loan or option arrangements, puts or calls,
guarantees against loss or guarantees of profit, division of losses or
profits, or the giving or withholding of proxies; (vii) no associate of
any Nominee owns beneficially, directly or indirectly, any securities of
Tri-Continental; (viii) no Nominee owns beneficially, directly or
indirectly, any securities of any parent or subsidiary of
Tri-Continental; (ix) no Nominee or any of his/her associates was a party
to any transaction, or series of similar transactions, since the
beginning of Tri-Continental's last fiscal year, or is a party to any
currently proposed transaction, or series of similar transactions, to
which Tri-Continental or any of its subsidiaries was or is to be a party,
in which the amount involved exceeds $60,000; and (x) no Nominee or any
of his/her associates has any arrangement or understanding with any
person with respect to any future employment by Tri-Continental or its
affiliates, or with respect to any future transactions to which
Tri-Continental or any of its affiliates will or may be a party.
A representative of Western Investment and Arthur D. Lipson intends to
appear in person or by proxy at the 2006 Annual Meeting to nominate the
persons specified in this Notice for election to the Tri-Continental
Board.
---------------------- ----------------------
CUSIP No. 895436103 13D Page 37 of 63 Pages
---------------------- ----------------------
Please address any correspondence to Western Investment LLC, Attention:
Arthur D. Lipson, telephone (801) 942-7803, facsimile (801) 942-1625 (with a
copy to our counsel, Olshan Grundman Frome Rosenzweig & Wolosky LLP, Park Avenue
Tower, 65 East 55th Street, New York, New York 10022, Attention: Steven Wolosky,
Esq., telephone (212) 451-2333, facsimile (212) 451-2222). The giving of this
Notice is not an admission that any procedures for notice concerning the
nomination of directors to the Tri-Continental Board are legal, valid or
binding, and each of Western Investment and Arthur D. Lipson reserve the right
to challenge their validity.
Very truly yours,
WESTERN INVESTMENT HEDGED PARTNERS, L.P.
By: Western Investment LLC,
Its General Partner
By: /s/ Arthur D. Lipson
------------------------------
Name: Arthur D. Lipson
Title: Managing Member
/s/ Arthur D. Lipson
----------------------------------
ARTHUR D. LIPSON
---------------------- ----------------------
CUSIP No. 895436103 13D Page 38 of 63 Pages
---------------------- ----------------------
EXHIBIT A
TRANSACTIONS IN THE COMMON STOCK OF TRI-CONTINENTAL
Transaction Quantity Date Price ($)
----------- -------- ---- ---------
WESTERN INVESTMENT HEDGED PARTNERS, L.P.
Buy 100 02/26/99 28.0625
Sell 100 03/26/99 28.1240
Buy 3,000 01/12/00 26.9375
Buy 2,000 01/14/00 27.1875
Buy 3,000 02/08/00 25.6875
Buy 6,000 03/24/00 25.3203
Sell 3,000 04/27/00 25.1242
Sell 1,200 04/27/00 25.1242
Sell 600 05/10/00 24.4992
Sell 200 06/22/00 25.4551
Sell 3,000 06/22/00 25.4551
Sell 5,800 06/22/00 25.4551
Sell 200 06/23/00 25.4367
Buy 15,000 12/28/00 21.1875
Buy 5,000 01/04/01 21.5000
Sell 200 04/23/01 21.6493
Sell 4,000 04/24/01 21.6993
Sell 2,900 05/03/01 22.5192
Buy 1,000 08/10/01 20.8500
Buy 3,000 08/13/01 20.8433
Buy 400 08/15/01 20.7000
Sell 7,900 09/04/01 20.4168
Sell 100 09/04/01 20.4168
Sell 2,000 09/05/01 20.1443
Sell 2,000 09/19/01 18.6094
Sell 900 10/12/01 19.4494
Sell 1,000 10/12/01 19.4494
Sell 3,000 10/12/01 19.4494
Sell 400 10/12/01 19.4494
Buy 500 12/19/01 18.7100
Buy 3,000 12/20/01 18.5700
Buy 600 12/21/01 18.5000
Buy 1,400 12/21/01 18.5100
Buy 200 12/24/01 18.4600
Buy 2,000 12/26/01 18.5750
Buy 7,300 12/31/01 18.6374
Buy 100 01/02/02 18.6600
Sell 500 02/07/02 18.6982
---------------------- ----------------------
CUSIP No. 895436103 13D Page 39 of 63 Pages
---------------------- ----------------------
Transaction Quantity Date Price ($)
----------- -------- ---- ---------
Sell 3,000 02/07/02 18.6982
Sell 600 02/07/02 18.6982
Sell 1,400 02/07/02 18.6982
Sell 200 02/07/02 18.6982
Sell 2,000 02/07/02 18.6982
Sell 7,300 02/07/02 18.6982
Sell 100 02/07/02 18.6982
Buy 2,000 04/11/02 18.6900
Sell 2,000 04/11/02 18.6499
Buy 8,500 07/03/02 15.5200
Sell 2,200 07/05/02 15.7495
Buy 2,300 07/08/02 15.9100
Buy 500 07/24/02 12.5500
Sell 6,300 08/05/02 13.7896
Sell 2,300 08/05/02 13.7896
Sell 500 08/05/02 13.7896
Buy 8,000 09/24/02 13.1950
Sell 1,700 11/04/02 14.9295
Sell 2,000 11/06/02 14.6996
Buy 1,000 11/11/02 13.8200
Buy 1,900 11/19/02 13.7726
Buy 400 11/25/02 14.2000
Buy 1,500 12/02/02 14.2000
Buy 4,000 12/03/02 14.0750
Buy 4,000 12/04/02 13.9925
Buy 2,000 12/17/02 13.7200
Buy 29,000 12/20/02 13.3961
Buy 36,600 12/23/02 13.4473
Buy 400 12/24/02 13.4400
Buy 12,100 12/24/02 13.4652
Buy 200 12/24/02 13.4400
Sell 400 12/24/02 13.4396
Buy 21,900 12/26/02 13.5399
Buy 3,300 12/27/02 13.3200
Buy 54,700 12/30/02 13.2416
Buy 56,700 12/31/02 13.2689
Buy 40,900 01/02/03 13.4718
Buy 14,900 01/03/03 13.6960
Buy 30,600 01/06/03 13.8474
Buy 3,000 01/08/03 13.7567
Buy 2,000 01/10/03 13.9000
Buy 4,900 01/28/03 13.1229
Buy 1,700 01/29/03 13.1100
---------------------- ----------------------
CUSIP No. 895436103 13D Page 40 of 63 Pages
---------------------- ----------------------
Transaction Quantity Date Price ($)
----------- -------- ---- ---------
Buy 1,900 01/30/03 13.0858
Buy 1,000 02/13/03 12.4000
Buy 19,600 02/14/03 12.4880
Buy 2,000 02/19/03 12.7500
Buy 800 02/20/03 12.7800
Buy 1,000 03/04/03 12.6000
Buy 6,300 03/08/03 12.4946
Buy 3,800 03/10/03 12.3911
Buy 8,100 03/11/03 12.2923
Buy 2,000 03/13/03 12.3200
Sell 1,000 03/13/03 12.5696
Sell 3,000 03/13/03 12.5696
Buy 2,000 03/14/03 12.6400
Sell 2,000 03/14/03 12.6696
Buy 4,000 03/17/03 12.8215
Buy 2,900 03/20/03 12.9672
Buy 3,700 03/21/03 13.4286
Buy 4,800 03/31/03 12.7375
Buy 2,800 04/01/03 12.7400
Buy 2,000 04/02/03 13.0900
Sell 1,000 04/03/03 13.5944
Sell 1,300 04/29/03 14.0493
Sell 3,500 04/30/03 14.0379
Sell 7,700 05/01/03 13.9755
Sell 2,400 05/02/03 14.0738
Sell 2,000 05/02/03 14.0738
Sell 800 05/02/03 14.0738
Sell 1,000 05/02/03 14.0738
Sell 1,100 05/02/03 14.0738
Sell 2,600 05/06/03 14.2842
Sell 1,000 05/06/03 14.2842
Sell 1,900 05/06/03 14.2842
Sell 400 05/06/03 14.2842
Sell 1,500 05/06/03 14.2842
Sell 200 05/06/03 14.2843
Sell 3,800 05/07/03 14.2741
Sell 4,000 05/07/03 14.2741
Sell 600 05/07/03 14.2741
Sell 1,400 05/09/03 14.3307
Sell 12,600 05/09/03 14.3307
Sell 8,300 05/12/03 14.5201
Sell 3,800 05/13/03 14.5972
Sell 3,800 05/15/03 14.5593
---------------------- ----------------------
CUSIP No. 895436103 13D Page 41 of 63 Pages
---------------------- ----------------------
Transaction Quantity Date Price ($)
----------- -------- ---- ---------
Sell 400 05/19/03 14.2193
Sell 1,000 05/20/03 14.1818
Sell 3,800 05/20/03 14.1818
Sell 3,200 05/20/03 14.1818
Buy 22,500 05/22/03 14.1503
Buy 7,100 05/23/03 14.1837
Buy 600 05/29/03 14.4533
Buy 4,500 06/04/03 14.9742
Buy 10,800 06/05/03 14.9308
Buy 2,000 06/06/03 15.1000
Buy 3,600 06/09/03 14.7900
Buy 3,100 06/10/03 14.8345
Buy 10,100 06/11/03 14.9627
Buy 600 06/12/03 15.0600
Buy 3,100 06/13/03 15.0132
Buy 2,100 06/16/03 15.1786
Buy 6,900 06/17/03 15.2401
Buy 2,300 06/18/03 15.1500
Buy 800 06/19/03 15.2100
Buy 2,300 06/26/03 14.8700
Buy 3,600 07/02/03 14.9658
Buy 2,700 07/03/03 14.9056
Buy 2,000 07/16/03 15.1700
Sell 200 07/17/03 15.0493
Buy 2,000 08/04/03 14.6860
Buy 2,100 08/12/03 14.6638
Buy 2,600 08/13/03 14.7638
Buy 5,300 08/14/03 14.7170
Buy 1,800 08/19/03 14.9300
Buy 1,600 08/22/03 15.1200
Buy 1,400 09/08/03 15.3033
Buy 1,000 09/09/03 15.2400
Buy 4,000 12/15/03 15.9423
Buy 6,900 12/16/03 15.8063
Buy 1,200 12/17/03 15.7983
Buy 11,000 12/23/03 15.9080
Buy 2,200 12/24/03 15.9373
Buy 5,000 12/31/03 16.3005
Buy 3,200 01/07/04 16.5816
Buy 8,300 01/12/04 16.6722
Buy 1,300 01/13/04 16.6338
Buy 11,400 01/15/04 16.8835
Buy 2,000 01/16/04 16.9093
---------------------- ----------------------
CUSIP No. 895436103 13D Page 42 of 63 Pages
---------------------- ----------------------
Transaction Quantity Date Price ($)
----------- -------- ---- ---------
Buy 600 01/20/04 16.9983
Buy 6,800 01/21/04 17.0568
Buy 1,800 01/22/04 17.1128
Buy 1,000 01/23/04 17.2250
Buy 8,700 10/04/04 16.9404
Buy 8,200 10/05/04 16.8862
Buy 12,300 10/06/04 16.9110
Buy 14,600 10/07/04 16.8854
Buy 3,000 10/08/04 16.7602
Buy 6,100 10/12/04 16.6721
Buy 1,500 10/13/04 16.7425
Buy 400 10/19/04 16.4910
Buy 13,000 10/20/04 16.3751
Buy 13,500 10/21/04 16.5128
Buy 18,600 10/22/04 16.5008
Buy 3,100 10/25/04 16.3207
Buy 21,900 10/26/04 16.5234
Buy 17,500 10/27/04 16.6873
Buy 12,800 10/28/04 16.8541
Buy 300 10/29/04 16.9352
Buy 27,500 11/01/04 16.9027
Buy 32,600 11/02/04 17.0161
Buy 8,300 11/02/04 16.9971
Buy 4,000 11/12/04 17.6973
Buy 5,000 11/15/04 17.7822
Buy 36,400 12/15/04 18.0468
Buy 8,400 12/27/04 18.1645
Buy 12,200 12/28/04 18.1363
Buy 16,000 12/31/04 18.2800
Buy 62,900 12/31/04 18.2800
Buy 700 01/10/05 17.9328
Buy 2,600 01/11/05 17.8423
Buy 3,000 01/13/05 17.6618
Buy 10,900 01/14/05 17.7564
Buy 17,500 01/18/05 17.7912
Buy 9,600 01/19/05 17.8072
Buy 2,000 01/21/05 17.6535
Buy 2,500 01/24/05 17.4681
Buy 200 01/27/05 17.5835
Buy 10,600 01/28/05 17.5634
Buy 7,500 01/31/05 17.6454
Buy 6,900 02/02/05 17.7666
Buy 24,400 04/18/05 17.2760
---------------------- ----------------------
CUSIP No. 895436103 13D Page 43 of 63 Pages
---------------------- ----------------------
Transaction Quantity Date Price ($)
----------- -------- ---- ---------
Buy 11,500 04/19/05 17.3535
Buy 10,700 04/20/05 17.1833
Buy 17,900 05/20/05 17.8302
Buy 13,800 05/23/05 17.9107
Buy 11,300 05/24/05 17.8940
Buy 26,500 05/25/05 17.8479
Buy 56,400 05/26/05 17.9034
Buy 5,300 05/27/05 17.9496
Buy 1,700 05/27/05 17.9585
Buy 2,000 06/03/05 18.0011
Sell 1,000 07/18/05 18.2707
Sell 1,300 07/21/05 18.4107
Buy 400 07/29/05 18.4800
Buy 2,300 10/04/05 18.2565
Buy 19,000 10/05/05 18.1118
Buy 30,400 10/06/05 17.9522
Buy 17,200 10/07/05 17.9067
Buy 1,800 10/10/05 17.8944
Buy 300 10/11/05 17.8200
Buy 2,700 10/12/05 17.6804
Buy 100 10/13/05 17.6200
Buy 27,600 10/14/05 17.6910
Buy 31,800 10/17/05 17.7842
Buy 59,800 10/18/05 17.8096
Buy 95,300 10/19/05 17.8047
Buy 5,400 10/20/05 17.9100
Buy 47,200 10/21/05 17.7650
Buy 76,500 10/24/05 17.8869
Buy 7,300 10/25/05 17.9377
Buy 8,200 10/26/05 17.9571
Buy 500 10/27/05 17.8360
Buy 11,300 10/28/05 17.8881
Buy 12,400 10/31/05 18.0410
Buy 5,900 11/02/05 18.1234
Buy 1,400 11/08/05 18.2100
Buy 6,800 11/09/05 18.2501
Buy 1,000 12/01/05 18.7680
Buy 315 12/02/05 18.7100
Buy 500 12/27/05 18.7300
Buy 15,100 12/27/05 18.7342
Buy 3,800 12/29/05 18.6602
---------------------- ----------------------
CUSIP No. 895436103 13D Page 44 of 63 Pages
---------------------- ----------------------
Transaction Quantity Date Price ($)
----------- -------- ---- ---------
WESTERN INVESTMENT INSTITUTIONAL PARTNERS LLC
Buy 19,300 02/02/04 17.1323
Buy 19,400 02/03/04 17.1311
Buy 12,900 02/04/04 17.0913
Buy 10,300 02/05/04 17.0558
Buy 28,900 02/06/04 17.1913
Buy 40,300 02/06/04 17.1744
Buy 26,700 02/09/04 17.2388
Buy 6,500 02/10/04 17.2815
Buy 26,500 02/10/04 17.2812
Buy 22,600 02/11/04 17.4326
Buy 7,100 02/13/04 17.4293
Buy 2,300 02/14/04 17.4365
Buy 34,000 02/15/04 17.4559
Buy 21,300 02/18/04 17.4872
Buy 16,900 02/19/04 17.4747
Buy 10,100 02/20/04 17.3394
Buy 6,000 02/21/04 17.2513
Buy 3,000 02/24/04 17.2533
Buy 28,000 02/25/04 17.3117
Buy 38,400 02/26/04 17.3473
Buy 40,500 02/27/04 17.4350
Buy 16,800 03/01/04 17.5171
Buy 49,600 03/02/04 17.5557
Buy 44,900 03/03/04 17.5540
Buy 1,700 03/09/04 17.4459
Buy 200 03/11/04 17.1300
Buy 5,000 03/12/04 17.0758
Buy 8,000 03/15/04 17.0413
Buy 9,600 03/16/04 17.0139
Buy 3,000 03/17/04 17.1406
Buy 100 03/18/04 17.2200
Buy 2,300 03/19/04 17.0443
Buy 2,300 03/22/04 16.8043
Buy 2,300 03/26/04 16.9443
Buy 4,800 03/29/04 17.1034
Buy 1,400 03/30/04 17.1614
Buy 5,000 03/31/04 17.1900
Buy 7,300 03/31/04 17.1637
Buy 13,400 04/01/04 17.2599
Buy 4,800 04/02/04 17.3284
Buy 12,200 04/05/04 17.3588
Buy 3,000 04/06/04 17.3456
---------------------- ----------------------
CUSIP No. 895436103 13D Page 45 of 63 Pages
---------------------- ----------------------
Transaction Quantity Date Price ($)
----------- -------- ---- ---------
Buy 3,000 04/08/04 17.4833
Buy 4,900 04/15/04 17.0487
Buy 8,400 04/20/04 17.1703
Buy 12,200 04/23/04 17.1780
Buy 7,400 04/26/04 17.1802
Buy 8,000 04/27/04 17.1946
Buy 8,100 10/05/04 16.8862
Buy 12,300 10/06/04 16.9117
Buy 5,300 12/03/04 17.9389
Buy 11,900 12/07/04 17.8839
Buy 15,000 12/08/04 17.7830
Buy 14,100 12/09/04 17.8686
Buy 3,000 12/10/04 17.8785
Buy 3,000 12/10/04 17.8585
Buy 42,600 12/10/04 17.8571
Buy 21,100 12/13/04 17.9713
Buy 70,000 12/15/04 18.0466
Buy 3,200 12/22/04 18.0429
Buy 6,400 12/23/04 18.1597
Buy 42,000 12/27/04 18.1635
Buy 22,500 12/29/04 18.1905
Buy 6,000 12/30/04 18.2264
Buy 4,300 12/30/04 18.2279
Buy 400 12/31/04 18.2835
Sell 5,300 03/29/05 17.6185
Sell 11,900 03/29/05 17.6185
Sell 15,000 03/29/05 17.6185
Sell 14,100 03/29/05 17.6185
Sell 42,600 03/29/05 17.6185
Sell 21,100 03/29/05 17.6185
Sell 10,000 03/29/05 17.6185
Sell 1,300 07/21/05 18.4107
WESTERN INVESTMENT ACTIVISM PARTNERS LLC
Buy 2,100 11/02/04 17.0084
Buy 8,500 11/03/04 17.1680
Buy 5,600 11/04/04 17.2500
Buy 52,400 11/04/04 17.3245
Buy 27,600 11/05/04 17.5197
Buy 30,500 11/05/04 17.5075
Buy 700 11/08/04 17.5028
Buy 9,200 11/10/04 17.5350
Buy 5,500 11/11/04 17.5808
---------------------- ----------------------
CUSIP No. 895436103 13D Page 46 of 63 Pages
---------------------- ----------------------
Transaction Quantity Date Price ($)
----------- -------- ---- ---------
Buy 7,500 11/12/04 17.7413
Buy 15,900 11/12/04 17.6966
Buy 19,300 11/15/04 17.7817
Buy 5,400 11/23/04 17.5320
Buy 5,500 12/03/04 17.9445
Buy 8,700 12/06/04 17.8893
Buy 27,100 12/06/04 17.8657
Buy 24,000 12/08/04 17.7823
Buy 20,900 12/13/04 17.9710
Buy 1,800 12/14/04 18.0085
Buy 9,100 12/14/04 18.0289
Buy 3,000 12/16/04 18.1185
Buy 5,400 12/16/04 18.0866
Buy 7,100 12/17/04 18.0631
Buy 9,000 12/23/04 18.1587
Buy 61,000 12/28/04 18.2007
Buy 30,200 12/29/04 18.1908
Buy 6,000 01/03/05 18.2943
Buy 6,000 01/04/05 17.8693
Buy 3,000 02/03/05 17.6802
Buy 9,200 02/04/05 17.7951
Buy 3,600 02/07/05 17.9199
Buy 3,000 02/09/05 17.9302
Sell 300 02/09/05 17.9242
Buy 5,400 02/15/05 18.0863
WESTERN INVESTMENT TOTAL RETURN FUND LTD.
Buy 500 12/04/96 26.4880
Sell 500 12/20/96 24.6596
Buy 10,000 03/17/97 25.1471
Sell 500 03/19/97 25.2835
Sell 9,500 03/24/97 24.9804
Buy 10,000 08/18/97 28.1250
Buy 1,700 08/20/97 28.0625
Sell 4,800 08/26/97 27.9991
Sell 5,200 08/27/97 27.7491
Sell 1,700 08/27/97 27.7491
Buy 10,000 08/28/98 24.8750
Sell 7,500 09/21/98 25.2492
Buy 12,300 09/23/98 25.8125
Sell 2,500 09/23/98 25.9991
Sell 4,000 09/24/98 25.6866
Sell 5,800 09/28/98 25.9690
---------------------- ----------------------
CUSIP No. 895436103 13D Page 47 of 63 Pages
---------------------- ----------------------
Transaction Quantity Date Price ($)
----------- -------- ---- ---------
Sell 2,500 09/28/98 25.9690
Buy 3,100 12/02/98 29.1875
Sell 3,100 12/18/98 28.4990
Buy 5,000 01/10/00 27.1875
Buy 1,300 01/25/00 25.8125
Buy 6,900 03/22/00 25.1250
Sell 3,000 03/23/00 25.4992
Buy 2,000 03/24/00 25.3203
Sell 2,000 04/20/00 24.9992
Sell 1,300 04/20/00 24.9992
Sell 6,700 04/20/00 24.9992
Sell 200 06/22/00 25.4551
Sell 2,000 06/22/00 25.4551
Buy 48 06/28/00 25.2188
Buy 2,000 01/03/01 21.5625
Sell 48 04/24/01 21.6994
Sell 1,952 04/24/01 21.6993
Sell 48 05/03/01 22.5192
Buy 5,000 04/25/02 18.5400
Sell 5,000 04/25/02 18.4994
Buy 6,200 11/21/02 14.2000
Buy 13,200 12/23/02 13.4473
Buy 12,100 12/24/02 13.4652
Buy 200 12/24/02 13.4400
Buy 3,000 12/26/02 13.5399
Buy 1,000 12/27/02 13.3200
Buy 2,100 01/02/03 13.4718
Sell 6,200 05/08/03 14.2250
Sell 700 05/08/03 14.2250
Sell 5,500 06/24/03 14.7993
Sell 7,000 06/25/03 14.9561
Sell 200 06/25/03 14.9561
Sell 1,600 06/25/03 14.9561
Sell 4,800 06/27/03 14.7616
Buy 500 08/04/03 14.6860
Buy 500 08/12/03 14.6638
Buy 600 08/13/03 14.7638
Buy 1,300 08/14/03 14.7170
Buy 500 08/19/03 14.9300
Buy 400 08/22/03 15.1200
Buy 400 09/08/03 15.3033
Buy 1,000 12/15/03 15.9498
Buy 1,700 12/16/03 15.8108
---------------------- ----------------------
CUSIP No. 895436103 13D Page 48 of 63 Pages
---------------------- ----------------------
Transaction Quantity Date Price ($)
----------- -------- ---- ---------
Buy 2,600 12/18/03 15.9113
Buy 500 12/19/03 15.9550
Buy 1,500 12/23/03 15.9984
Buy 1,200 12/30/03 16.3078
Buy 800 01/07/04 16.5925
Buy 2,000 01/12/04 16.6765
Buy 1,200 01/14/04 16.6283
Buy 2,800 01/15/04 16.8867
Buy 500 01/16/04 16.9268
Buy 1,700 01/21/04 17.0620
Buy 500 01/22/04 17.1300
Buy 44,900 09/27/04 16.4402
Sell 5,700 12/31/04 18.2796
Sell 3,000 12/31/04 18.2796
Sell 1,000 12/31/04 18.2796
Sell 2,100 12/31/04 18.2796
Sell 500 12/31/04 18.2796
Sell 500 12/31/04 18.2796
Sell 600 12/31/04 18.2796
Sell 1,300 12/31/04 18.2796
Sell 500 12/31/04 18.2796
Sell 400 12/31/04 18.2796
Sell 400 12/31/04 18.2796
Sell 1,000 12/31/04 18.2800
Sell 1,700 12/31/04 18.2800
Sell 2,600 12/31/04 18.2800
Sell 500 12/31/04 18.2800
Sell 1,500 12/31/04 18.2800
Sell 1,200 12/31/04 18.2800
Sell 800 12/31/04 18.2800
Sell 2,000 12/31/04 18.2800
Sell 1,200 12/31/04 18.2800
Sell 2,800 12/31/04 18.2800
Sell 500 12/31/04 18.2800
Sell 1,700 12/31/04 18.2800
Sell 500 12/31/04 18.2800
Sell 44,900 12/31/04 18.2800
BENCHMARK PLUS PARTNERS, L.L.C.
Buy 1,100 09/07/04 16.6800
Buy 1,900 09/08/04 16.6700
Buy 24,900 09/09/04 16.6491
Buy 20,300 09/13/04 16.7549
---------------------- ----------------------
CUSIP No. 895436103 13D Page 49 of 63 Pages
---------------------- ----------------------
Transaction Quantity Date Price ($)
----------- -------- ---- ---------
Buy 17,200 09/14/04 16.7595
Buy 5,300 09/15/04 16.6670
Buy 9,700 09/16/04 16.6727
Buy 12,700 09/20/04 16.7035
Buy 11,900 09/21/04 16.7356
Buy 300 09/22/04 16.6100
Buy 100 09/23/04 16.5100
Buy 17,100 09/24/04 16.5025
Buy 18,800 09/27/04 16.4260
Buy 17,100 09/28/04 16.4936
Buy 7,000 09/29/04 16.5233
Buy 36,800 09/30/04 16.5586
Buy 32,900 10/01/04 16.7452
Buy 1,900 10/25/04 16.3500
Buy 10,600 10/26/04 16.5300
Buy 11,000 10/27/04 16.7375
Buy 14,400 11/22/04 17.6445
Buy 9,600 11/23/04 17.6415
Buy 11,700 11/24/04 17.7291
Buy 10,300 11/26/04 17.8250
Buy 3,500 11/29/04 17.8229
Buy 3,400 11/30/04 17.7088
Buy 12,700 12/14/04 18.0650
Buy 9,000 02/15/05 18.1029
Buy 3,100 02/16/05 18.1014
Buy 16,625 02/17/05 18.0405
Buy 13,700 02/18/05 18.0168
Buy 29,500 02/22/05 17.8765
Buy 41,200 02/23/05 17.8677
Buy 19,600 02/24/05 17.9110
Buy 10,000 02/25/05 18.1343
Buy 13,200 02/28/05 18.0367
Buy 8,300 03/01/05 18.1270
Buy 18,700 03/02/05 18.1543
Buy 2,000 03/02/05 18.1300
Buy 800 03/03/05 18.1750
Buy 12,300 03/03/05 18.1712
Buy 15,400 03/04/05 18.3163
Buy 13,000 03/07/05 18.4154
Buy 10,900 03/08/05 18.3435
Buy 7,000 03/09/05 18.2186
Buy 4,000 03/10/05 18.1409
Buy 4,000 03/11/05 18.1417
---------------------- ----------------------
CUSIP No. 895436103 13D Page 50 of 63 Pages
---------------------- ----------------------
Transaction Quantity Date Price ($)
----------- -------- ---- ---------
Buy 4,900 03/14/05 18.0937
Buy 1,700 03/15/05 18.1881
Buy 2,900 03/23/05 17.5895
Buy 3,600 03/24/05 17.6830
Buy 11,300 03/28/05 17.6806
Buy 7,500 03/29/05 17.6043
Buy 11,900 03/30/05 17.6705
Buy 5,100 03/31/05 17.7907
Buy 3,900 04/01/05 17.6739
Buy 6,500 04/04/05 17.6396
Buy 4,300 04/05/05 17.8015
Buy 1,800 04/06/05 17.9002
Buy 2,500 04/07/05 17.9313
Buy 1,800 04/08/05 17.8366
Buy 3,100 04/11/05 17.7921
Buy 5,500 04/12/05 17.7106
Buy 2,500 04/13/05 17.7822
Buy 12,600 04/14/05 17.6489
Buy 5,700 04/15/05 17.4753
Buy 700 04/18/05 17.2760
Buy 26,400 04/21/05 17.3440
Buy 4,900 04/22/05 17.3303
Buy 31,700 04/25/05 17.4545
Buy 17,300 04/26/05 17.4420
Buy 17,800 04/27/05 17.2971
Buy 17,600 04/29/05 17.3154
Buy 3,600 05/02/05 17.4098
Buy 1,800 05/03/05 17.4200
Buy 7,200 05/04/05 17.5924
Buy 17,800 05/05/05 17.6490
Buy 5,000 05/06/05 17.6689
Buy 14,800 05/09/05 17.6438
Buy 20,500 05/10/05 17.5859
Buy 27,100 05/11/05 17.5609
Buy 33,600 05/12/05 17.5536
Buy 29,200 05/13/05 17.4242
Buy 58,400 05/16/05 17.4859
Buy 48,000 05/17/05 17.5502
Buy 10,700 05/18/05 17.7169
Buy 24,000 05/27/05 17.9496
Buy 19,700 05/31/05 17.8876
Buy 17,900 06/01/05 17.9896
Buy 1,900 06/02/05 17.9994
---------------------- ----------------------
CUSIP No. 895436103 13D Page 51 of 63 Pages
---------------------- ----------------------
Transaction Quantity Date Price ($)
----------- -------- ---- ---------
Buy 3,250 06/03/05 18.0011
Buy 500 06/07/05 18.0594
Buy 1,400 06/09/05 17.9495
Buy 4,700 06/10/05 17.9077
Buy 6,500 06/13/05 17.9750
Buy 5,500 06/14/05 17.9682
Buy 2,600 06/15/05 17.9993
Buy 5,200 06/16/05 18.0634
Buy 7,600 06/17/05 18.1829
Buy 6,200 06/20/05 18.1638
Buy 16,100 06/21/05 18.1730
Buy 17,000 06/22/05 18.1789
Buy 23,000 06/23/05 18.1218
Buy 5,000 06/24/05 17.9375
Buy 1,300 06/27/05 17.8266
Buy 4,100 07/05/05 17.8661
Buy 700 07/06/05 17.8917
Buy 3,000 07/07/05 17.8001
Buy 4,200 07/08/05 17.9972
Buy 4,900 07/11/05 18.1280
Buy 4,200 07/12/05 18.1842
Buy 9,800 07/13/05 18.1949
Buy 2,800 07/15/05 18.2989
Buy 2,600 07/20/05 18.3866
Buy 1,100 07/27/05 18.4300
Buy 5,700 07/28/05 18.5230
Buy 1,200 08/01/05 18.4268
Buy 5,000 08/02/05 18.5069
Buy 600 08/04/05 18.4879
Buy 3,200 08/09/05 18.4103
Buy 6,500 08/10/05 18.5466
Buy 800 08/11/05 18.4636
Buy 1,000 09/09/05 18.4800
Buy 3,000 09/19/05 18.2570
BENCHMARK PLUS INSTITUTIONAL PARTNERS, L.L.C.
Buy 17,000 03/10/05 18.1409
Buy 15,800 03/11/05 18.1417
Buy 19,400 03/14/05 18.0937
Buy 6,600 03/15/05 18.1881
Buy 200 03/16/05 17.9400
Buy 11,400 03/23/05 17.5895
Buy 14,600 03/24/05 17.6830
---------------------- ----------------------
CUSIP No. 895436103 13D Page 52 of 63 Pages
---------------------- ----------------------
Transaction Quantity Date Price ($)
----------- -------- ---- ---------
Buy 44,000 03/28/05 17.6806
Buy 29,800 03/29/05 17.6043
Buy 120,000 03/29/05 17.6209
Buy 47,700 03/30/05 17.6705
Buy 20,200 03/31/05 17.7907
Buy 15,400 04/01/05 17.6739
Buy 25,600 04/04/05 17.6396
Buy 17,200 04/05/05 17.8015
Buy 7,300 04/06/05 17.9002
Buy 10,200 04/07/05 17.9313
Buy 7,200 04/08/05 17.8366
Buy 12,500 04/11/05 17.7921
Buy 21,800 04/12/05 17.7106
Buy 9,900 04/13/05 17.7822
Buy 29,300 04/14/05 17.6489
Buy 22,700 04/15/05 17.4753
Buy 31,300 04/18/05 17.2760
Buy 8,000 04/21/05 17.3440
Buy 2,200 04/22/05 17.3303
Buy 10,600 04/25/05 17.4545
Buy 5,700 04/26/05 17.4420
Buy 6,000 04/27/05 17.2971
Buy 5,800 04/29/05 17.3154
Buy 1,200 05/02/05 17.4098
Buy 600 05/03/05 17.4200
Buy 1,800 05/04/05 17.5924
Buy 4,400 05/05/05 17.6490
Buy 1,200 05/06/05 17.6689
Buy 3,700 05/09/05 17.6438
Buy 5,100 05/10/05 17.5859
Buy 19,700 05/31/05 17.8876
Buy 17,900 06/01/05 17.9896
Buy 10,500 06/02/05 17.9994
Buy 4,250 06/03/05 18.0011
Buy 7,000 06/06/05 17.9114
Buy 3,000 06/07/05 18.0594
Buy 6,500 06/08/05 17.9800
Buy 7,700 06/09/05 17.9495
Buy 26,900 06/10/05 17.9077
Buy 36,600 06/13/05 17.9750
Buy 31,000 06/14/05 17.9682
Buy 14,600 06/15/05 17.9993
Buy 20,800 06/16/05 18.0634
---------------------- ----------------------
CUSIP No. 895436103 13D Page 53 of 63 Pages
---------------------- ----------------------
Transaction Quantity Date Price ($)
----------- -------- ---- ---------
Buy 31,300 06/17/05 18.1829
Buy 24,800 06/20/05 18.1638
Buy 64,500 06/21/05 18.1730
Buy 69,500 06/22/05 18.1789
Buy 84,300 06/23/05 18.1218
Buy 20,600 06/24/05 17.9375
Buy 5,100 06/27/05 17.8266
Buy 1,300 07/01/05 17.7731
Buy 16,600 07/05/05 17.8661
Buy 2,900 07/06/05 17.8917
Buy 11,100 07/07/05 17.8001
Buy 9,000 07/08/05 17.9972
Buy 19,500 07/11/05 18.1280
Buy 16,900 07/12/05 18.1842
Buy 39,000 07/13/05 18.1949
Buy 300 07/14/05 18.2800
Buy 11,300 07/15/05 18.2989
Buy 10,500 07/20/05 18.3866
Buy 3,300 07/27/05 18.4300
Buy 22,800 07/28/05 18.5230
Buy 4,800 08/01/05 18.4268
Buy 19,800 08/02/05 18.5069
Buy 700 08/03/05 18.4700
Buy 2,200 08/04/05 18.4879
Buy 12,800 08/09/05 18.4103
Buy 26,200 08/10/05 18.5466
Buy 3,100 08/11/05 18.4636
Buy 1,600 08/17/05 18.3700
Buy 1,400 08/18/05 18.3300
Buy 200 08/22/05 18.3900
Buy 200 09/06/05 18.2800
Buy 1,000 09/09/05 18.4800
Buy 600 09/16/05 18.3700
Buy 12,200 09/19/05 18.2570
ARTHUR D. LIPSON
Buy 1 11/06/95 23.5000
Buy 1,000 12/02/05 18.6900
---------------------- ----------------------
CUSIP No. 895436103 13D Page 54 of 63 Pages
---------------------- ----------------------
EXHIBIT B
CONSENTS OF NOMINEES
---------------------- ----------------------
CUSIP No. 895436103 13D Page 55 of 63 Pages
---------------------- ----------------------
ARTHUR D. LIPSON
C/O WESTERN INVESTMENT LLC
2855 E. COTTONWOOD PARKWAY, SUITE 110
SALT LAKE CITY, UTAH 84121
December 29, 2005
Tri-Continental Corporation
100 Park Avenue
New York, New York 10017
Attn: Corporate Secretary
Dear Sir:
You are hereby notified that the undersigned consents to (i) being named as
a nominee in the notice provided by Western Investment Hedged Partners, L.P.
("Western") and Arthur D. Lipson of their intention to nominate the undersigned
as a director of Tri-Continental Corporation ("Tri-Continental") at the 2006
annual meeting of stockholders, or any other meeting of stockholders held in
lieu thereof, and any adjournments, postponements, reschedulings or
continuations thereof (the "Annual Meeting"), (ii) being named as a nominee in
any proxy statement filed by Western and/or Mr. Lipson in connection with the
solicitation of proxies or written consents for election of the undersigned at
the Annual Meeting, and (iii) serving as a director of Tri-Continental if
elected at the Annual Meeting.
Very truly yours,
/s/ Arthur D. Lipson
Arthur D. Lipson
---------------------- ----------------------
CUSIP No. 895436103 13D Page 56 of 63 Pages
---------------------- ----------------------
MATTHEW S. CROUSE
C/O WESTERN INVESTMENT LLC
2855 E. COTTONWOOD PARKWAY, SUITE 110
SALT LAKE CITY, UTAH 84121
December 29, 2005
Tri-Continental Corporation
100 Park Avenue
New York, New York 10017
Attn: Corporate Secretary
Dear Sir:
You are hereby notified that the undersigned consents to (i) being named as
a nominee in the notice provided by Western Investment Hedged Partners, L.P.
("Western") and Arthur D. Lipson of their intention to nominate the undersigned
as a director of Tri-Continental Corporation ("Tri-Continental") at the 2006
annual meeting of stockholders, or any other meeting of stockholders held in
lieu thereof, and any adjournments, postponements, reschedulings or
continuations thereof (the "Annual Meeting"), (ii) being named as a nominee in
any proxy statement filed by Western and/or Mr. Lipson in connection with the
solicitation of proxies or written consents for election of the undersigned at
the Annual Meeting, and (iii) serving as a director of Tri-Continental if
elected at the Annual Meeting.
Very truly yours,
/s/ Matthew S. Crouse
Matthew S. Crouse
---------------------- ----------------------
CUSIP No. 895436103 13D Page 57 of 63 Pages
---------------------- ----------------------
PAUL DEROSA
C/O MT LUCAS, LLC
730 FIFTH AVENUE
NEW YORK, NY 10019
December 29, 2005
Tri-Continental Corporation
100 Park Avenue
New York, New York 10017
Attn: Corporate Secretary
Dear Sir:
You are hereby notified that the undersigned consents to (i) being named as
a nominee in the notice provided by Western Investment Hedged Partners, L.P.
("Western") and Arthur D. Lipson of their intention to nominate the undersigned
as a director of Tri-Continental Corporation ("Tri-Continental") at the 2006
annual meeting of stockholders, or any other meeting of stockholders held in
lieu thereof, and any adjournments, postponements, reschedulings or
continuations thereof (the "Annual Meeting"), (ii) being named as a nominee in
any proxy statement filed by Western and/or Mr. Lipson in connection with the
solicitation of proxies or written consents for election of the undersigned at
the Annual Meeting, and (iii) serving as a director of Tri-Continental if
elected at the Annual Meeting.
Very truly yours,
/s/ Paul DeRosa
Paul DeRosa
---------------------- ----------------------
CUSIP No. 895436103 13D Page 58 of 63 Pages
---------------------- ----------------------
MARLENE A. PLUMLEE
C/O UNIVERSITY OF UTAH
SCHOOL OF ACCOUNTING AND INFORMATION SYSTEMS
1645 E. CAMPUS CENTER DRIVE
SALT LAKE CITY, UT 84112
December 29, 2005
Tri-Continental Corporation
100 Park Avenue
New York, New York 10017
Attn: Corporate Secretary
Dear Sir:
You are hereby notified that the undersigned consents to (i) being named as
a nominee in the notice provided by Western Investment Hedged Partners, L.P.
("Western") and Arthur D. Lipson of their intention to nominate the undersigned
as a director of Tri-Continental Corporation ("Tri-Continental") at the 2006
annual meeting of stockholders, or any other meeting of stockholders held in
lieu thereof, and any adjournments, postponements, reschedulings or
continuations thereof (the "Annual Meeting"), (ii) being named as a nominee in
any proxy statement filed by Western and/or Mr. Lipson in connection with the
solicitation of proxies or written consents for election of the undersigned at
the Annual Meeting, and (iii) serving as a director of Tri-Continental if
elected at the Annual Meeting.
Very truly yours,
/s/ Marlene A. Plumlee
Marlene A. Plumlee
---------------------- ----------------------
CUSIP No. 895436103 13D Page 59 of 63 Pages
---------------------- ----------------------
JOINT FILING AND SOLICITATION AGREEMENT
WHEREAS, certain of the undersigned are stockholders, direct or beneficial,
of Tri-Continental Corporation, a Maryland corporation ("Tri-Continental");
WHEREAS, Western Investment LLC ("Western Investment"), Western Investment
Hedged Partners, L.P. ("WIHP"), Western Investment Activism Partners LLC, Arthur
D. Lipson, Matthew S. Crouse, Paul DeRosa, Marlene A. Plumlee, Benchmark Plus
Institutional Partners, L.L.C., Benchmark Plus Management, L.L.C., Benchmark
Plus Partners, L.L.C., Paradigm Partners, N.W., Inc., Scott Franzblau, Robert
Ferguson and Michael Dunmire wish to form a group for the purpose of seeking
representation on the Board of Directors of Tri-Continental;
WHEREAS, WIHP and Mr. Lipson intend to nominate Arthur D. Lipson, Matthew
S. Crouse, Paul DeRosa and Marlene A. Plumlee as nominees to be elected to the
Board of Directors of Tri-Continental at the 2006 annual meeting of stockholders
of Tri-Continental, or any other meeting of stockholders held in lieu thereof,
and any adjournments, postponements, reschedulings or continuations thereof (the
"Annual Meeting").
NOW, IT IS AGREED, this 6th day of January 2006 by the parties hereto:
1. In accordance with Rule 13d-1(k)(1)(iii) under the Securities Exchange
Act of 1934, as amended, each of the undersigned (collectively, the "Group")
agrees to the joint filing on behalf of each of them of statements on Schedule
13D with respect to the securities of Tri-Continental to the extent required
under applicable securities laws. Each member of the Group shall be responsible
for the accuracy and completeness of his/her/its own disclosure therein.
2. So long as this agreement is in effect, each of the undersigned shall
provide written notice to Olshan Grundman Frome Rosenzweig & Wolosky LLP
("Olshan") of (i) any of their purchases or sales of securities of
Tri-Continental or (ii) any securities of Tri-Continental over which they
acquire or dispose of beneficial ownership. Notice shall be given no later than
24 hours after each such transaction.
3. Each of the undersigned agrees to solicit proxies or written consents
for the election of Arthur D. Lipson, Matthew S. Crouse, Paul DeRosa and Marlene
A. Plumlee, or any other person(s) nominated by WIHP or Mr. Lipson, to the Board
of Directors of Tri-Continental at the Annual Meeting (the "Nominees").
4. Western Investment agrees to bear all expenses incurred in connection
with the Group's activities, including expenses incurred by any of the parties
in a solicitation of proxies or written consents by the members of the Group in
connection with the Annual Meeting. Notwithstanding the foregoing, Western
Investment shall not be required to reimburse any party for (i) out-of-pocket
expenses incurred by a party in the aggregate in excess of $250 without Western
Investment's prior written approval; (ii) the value of the time of any party;
(iii) legal fees incurred without Western Investment's prior written approval;
or (iv) the costs of any counsel, other than Olshan, employed in connection with
any pending or threatened litigation without Western Investment's prior written
approval.
---------------------- ----------------------
CUSIP No. 895436103 13D Page 60 of 63 Pages
---------------------- ----------------------
5. The relationship of the parties hereto shall be limited to carrying on
the business of the Group in accordance with the terms of this Agreement. Such
relationship shall be construed and deemed to be for the sole and limited
purpose of carrying on such business as described herein. Nothing herein shall
be construed to authorize any party to act as an agent for any other party, or
to create a joint venture or partnership, or to constitute an indemnification.
Nothing herein shall restrict any party's right to purchase or sell securities
of Tri-Continental, as he/she/it deems appropriate, in his/her/its sole
discretion, provided that all such purchases and sales are made in compliance
with all applicable securities laws.
6. This Agreement may be executed in counterparts, each of which shall be
deemed an original and all of which, taken together, shall constitute but one
and the same instrument, which may be sufficiently evidenced by one counterpart.
7. In the event of any dispute arising out of the provisions of this
Agreement, the parties hereto consent and submit to the exclusive jurisdiction
of the Federal and State Courts in the State of New York.
8. Any party hereto may terminate his/her/its obligations under this
agreement at any time on 24 hours' written notice to all other parties, with a
copy by fax to Steven Wolosky at Olshan, Fax No. (212) 451-2222.
9. Each party acknowledges that Olshan shall act as counsel for both the
Group and Western Investment.
---------------------- ----------------------
CUSIP No. 895436103 13D Page 61 of 63 Pages
---------------------- ----------------------
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the day and year first above written.
WESTERN INVESTMENT LLC
By: /s/ Arthur D. Lipson
-----------------------------------
Name: Arthur D. Lipson
Title: Sole Member
WESTERN INVESTMENT HEDGED PARTNERS L.P.
By: Western Investment LLC,
Its General Partner
By: /s/ Arthur D. Lipson
-----------------------------------
Name: Arthur D. Lipson
Title: Managing Member
WESTERN INVESTMENT ACTIVISM PARTNERS LLC
By: Western Investment LLC,
Its Managing Member
By: /s/ Arthur D. Lipson
-----------------------------------
Name: Arthur D. Lipson
Title: Managing Member
BENCHMARK PLUS INSTITUTIONAL PARTNERS, L.L.C.
By: Benchmark Plus Management, L.L.C.,
Its Managing Member
By: /s/ Scott Franzblau
-----------------------------------
Name: Scott Franzblau
Title: Managing Member
By: /s/ Robert Ferguson
------------------------------------
Name: Robert Ferguson
Title: Managing Member
By: /s/ Michael Dunmire
------------------------------------
Name: Michael Dunmire
Title: Managing Member
---------------------- ----------------------
CUSIP No. 895436103 13D Page 62 of 63 Pages
---------------------- ----------------------
BENCHMARK PLUS MANAGEMENT, L.L.C.
By: /s/ Scott Franzblau
-----------------------------------
Name: Scott Franzblau
Title: Managing Member
By: /s/ Robert Ferguson
------------------------------------
Name: Robert Ferguson
Title: Managing Member
By: /s/ Michael Dunmire
------------------------------------
Name: Michael Dunmire
Title: Managing Member
BENCHMARK PLUS PARTNERS, L.L.C.
By: Paradigm Partners, N.W., Inc.
Its Managing Member
By: /s/ Robert Ferguson
------------------------------------
Name: Robert Ferguson
Title: President
By: /s/ Michael Dunmire
------------------------------------
Name: Michael Dunmire
Title: Chairman of the Board
PARADIGM PARTNERS, N.W., INC.
By: /s/ Robert Ferguson
------------------------------------
Name: Robert Ferguson
Title: President
By: /s/ Michael Dunmire
------------------------------------
Name: Michael Dunmire
Title: Chairman of the Board
/s/ Arthur D. Lipson
-----------------------------------------
ARTHUR D. LIPSON
/s/ Matthew S. Crouse
-----------------------------------------
MATTHEW S. CROUSE
/s/ Paul Derosa
-----------------------------------------
PAUL DEROSA
---------------------- ----------------------
CUSIP No. 895436103 13D Page 63 of 63 Pages
---------------------- ----------------------
/s/ Marlene A. Plumlee
-----------------------------------------
MARLENE A. PLUMLEE
/s/ Scott Franzblau
-----------------------------------------
SCOTT FRANZBLAU
/s/ Robert Ferguson
-----------------------------------------
ROBERT FERGUSON
/s/ Michael Dunmire
-----------------------------------------
MICHAEL DUNMIRE