The board of directors of Greenwich Street California Municipal Fund (AMEX: GCM) approved a proposed merger of the closed-end fund with Smith Barney California Municipals Fund, an open-end mutual fund. GCM is managed by Smith Barney Fund Management LLC, formerly known as SSB Citi Fund Management LLC, a wholly-owned subsidiary of Salomon Smith Barney Holdings Inc.

"If the reorganization is approved, shareholders of GCM will become shareholders of Smith Barney California Municipals Fund, receiving shares of that fund having a value equal to the aggregate net asset value of their holdings in GCM at the time of the transaction," the company said in a statement. A shareholder meeting to approve the transaction is scheduled for Dec. 10, 2001. As of the market close on Sept. 7, shares in GCM were trading at $14, up $1.14 or 8.9%. The day before, the discount to net asset value was 10.5%, based on an NAV of $14.37.

Greenwich Street California Municipal Fund was established in October 1994. Joe Deane has been the fund’s portfolio manager since its inception. Net assets as of Feb. 28 were $51 million.

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