Issue Price for YE Dividend and Distribution
General American Investors Co., Inc.
On December 14, 2005, the Board of Directors of General American Investors Company announced the appointment of Sally A. Lynch, Ph.D., and Jesse Stuart, CFA, as Vice-Presidents of the Company.
Dr. Lynch has been employed as a security analyst with the Company since 1997 and is responsible for covering companies in the biotechnology and pharmaceutical industries. Prior to joining the Company, Dr. Lynch served as a technical consultant to investment management organizations; in addition, she was a postdoctoral fellow and research assistant at Memorial Sloan-Kettering Cancer Center (1988-1994). She is a graduate of the State University of New York at Stony Brook and received a Ph.D. in Molecular Microbiology from SUNY-Stony Brook.
Mr. Stuart has been employed as a security analyst with the Company since 2003 and has general industry responsibilities. Prior to joining the Company, Mr. Stuart served for 7 years as an equity analyst and portfolio manager at Scudder, Stevens and Clark (currently a subsidiary of Deutsche Bank) and served as a strategy consultant prior thereto. He is a graduate of Brown University and was elected Phi Beta Kappa.
In addition, Eugene S. Stark, Vice-President, Administration, was appointed Chief Compliance Officer effective January 1, 2006 upon the scheduled conclusion on December 31, 2005 of the consulting agreement between Eugene L. DeStaebler, Jr. and the Company.
The Board of Directors also authorized the repurchase of up to an additional 750,000 outstanding shares of common stock when the shares are trading at a discount to the underlying net asset value of at least 8%. This continues a repurchase program which began in March 1995. During the past 101/2 years (except for the period from April 2002 through March 2003 when its shares were trading above the threshold mentioned above), the Company has repurchased over 11.9 million shares of Common Stock for $320.6 million at an average discount of 11.9%. Included in these totals is year-to-date activity through September 2005, during which the Company repurchased 908,000 shares for approximately $29.0 million at an average discount of 12.7%.
The Company also The issue price represents the mean between the high and the low prices on the New York Stock Exchange on December 2, 2005, which was below the net asset value of $39.49 per share on that date. As announced on November 2, the dividends and distributions, which, in the aggregate, amount to $1.847725 per share, consist of:
a capital gain distribution of $1.242222 per share from net long-term profits on securities sold during the period January 1, 2005 through October 31, 2005;
a short-term gain distribution of $0.052625 per share from net short-term profits on securities sold during the period January 1, 2005 through October 31, 2005; and
an income dividend of $0.552878 per share representing the distribution for the full year 2005 from estimated accumulated undistributed income.
The dividends and distributions are payable on December 22, 2005.
General American Investors (NYSE symbol GAM), a closed-end investment company founded in 1927, has been publicly traded since its inception and has been listed on the NYSE since 1930. The objective of the Company is long-term capital appreciation through investment in companies with above average growth potential. General American has net assets of approximately $1.1 billion applicable to its 28.2 million shares of common stock outstanding. The aggregate liquidation value of the Company’s preferred stock is $200 million. Its preferred shares (symbol GAM Pr B) are also listed on the NYSE.
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