Dresdner RCM Global Investors is having a difficult time getting its shareholders to vote for the reorganization it proposed in October. The firm wants to hand over its 13 mutual funds to PIMCO Funds in order to help the expansion of the institutional and retail distribution channels for both firms, as well as to give shareholders exchange privileges among a broader group of funds. Both firms are affiliates under the Allianz AG umbrella.
Apparently, however, the firm is having a problem getting the necessary approval of shareholders. Consequently, Robert Goldstein, president Dresdner, sent out a letter, dated Dec. 6, asking advisers to tell their clients to vote for the proposal.
"Due to the large and diversified stockholder base of these Funds, DRCM has not yet obtained the requisite votes to approve the proposals," the letter says. It then continues in capital letters: "THEREFORE, WE ASK YOU TO CONSIDER CONTACTING YOUR CLIENTS WITH HOLDINGS IN THESE FUNDS TO ENCOURAGE THEM TO SEND IN THEIR PROXIES TO VOTE ON THE PROPOSALS..."
In July, Dresdner Bank, the parent company of Dresdner RCM, was acquired by Allianz. During a post-acquisition review of Allianz operations, Dresdner management and "other investment advisory subsidiaries of Allianz" decided it would make sense to merge the Dresdner funds into the PIMCO fund complex.