Lincoln National Convertible Securities Fund Announces Proposed Reorganization into Delaware Dividend Income Fund
February 16 2005 - 5:22PM
PR Newswire (US)
Lincoln National Convertible Securities Fund Announces Proposed
Reorganization into Delaware Dividend Income Fund PHILADELPHIA,
Feb. 16 /PRNewswire-FirstCall/ -- The Board of Directors of Lincoln
National Convertible Securities Fund, Inc. (NYSE:LNV) (the "Fund")
today announced its decision to approve a proposal providing for
the reorganization of the Fund into the Delaware Dividend Income
Fund (the "Dividend Income Fund"), an open-end series of Delaware
Group Equity Funds V. Under the terms of the proposed
reorganization, the Dividend Income Fund would acquire
substantially all of the assets of the Fund in exchange for Class A
shares of the Dividend Income Fund; those Class A shares of the
Dividend Income Fund would then be distributed pro rata to the
shareholders of the Fund's common stock; and the Fund would
subsequently be liquidated and dissolved. This transaction (the
"Reorganization"), which is expected to be tax-free, is subject to
the approval of the Fund's shareholders. The Board of Trustees of
Delaware Group Equity Funds V also approved the proposed
Reorganization today. If approved by shareholders of the Fund,
shares will be exchanged based on the respective net asset values
of the Fund's common stock and the Class A shares of the Dividend
Income Fund. It is currently anticipated that, during the three
months following the closing of the Reorganization, redemptions of
the Dividend Income Fund shares issued to shareholders of the Fund
in the Reorganization will be subject to a redemption fee of two
percent (2%). This redemption fee will be paid to the Dividend
Income Fund to help defray the transaction costs associated with
such redemptions. The Fund's Board of Directors plans to submit the
proposed Reorganization to the Fund's shareholders at a special
meeting, currently expected to take place in June 2005. Any
solicitation of proxies by the Fund in connection with this
shareholder meeting will be made only pursuant to separate proxy
materials filed under the federal securities laws. It is
anticipated that these proxy materials will be distributed to the
Fund's shareholders at the end of March 2005. There can be no
assurance that the shareholders of the Fund will vote in favor of
the proposed Reorganization. The Fund is a closed-end, diversified
investment management company managed by Delaware Management
Company. Delaware Management Company is a series of Delaware
Management Business Trust, a wholly owned subsidiary of Lincoln
National Corporation. The Fund's primary objective is to provide a
high level of total return through a combination of capital
appreciation and current income. As of February 15, 2005, the Fund
had total assets of approximately $87.3 million. The Dividend
Income Fund is an open-end, diversified mutual fund managed by
Delaware Management Company. The Fund's investment objective is to
seek to provide high current income and an investment that has the
potential for capital appreciation. As of February 15, 2005, the
Dividend Income Fund had total assets of approximately $279.5
million. In connection with the proposed Reorganization, the Fund
and Delaware Group Equity Funds V, on behalf of the Dividend Income
Fund, intend to file relevant materials with the U.S. Securities
and Exchange Commission (the "SEC"), including a Form N-14 combined
proxy statement for the Fund and a registration statement for the
Dividend Income Fund that will contain a prospectus. Because those
documents will contain important information, the Fund's
shareholders are urged to read them carefully when they become
available. When filed with the SEC, those documents will be
available free of charge at the SEC's website, http://www.sec.gov/.
The Fund's shareholders will also be able to obtain copies of these
documents and other transaction-related documents, when available,
by calling Delaware Investments toll-free at 800-523-1918. The
foregoing is not an offer to sell, nor a solicitation of an offer
to buy, shares of any fund, nor is it a solicitation of any proxy.
DATASOURCE: Delaware Investments CONTACT: Christina Ward, Corporate
Communications, Delaware Investments, +1-215-255-1388; or Priscilla
Brown, Investor Relations, Lincoln Financial Group, +1-215-448-1422
Web site: http://www.delawareinvestments.com/
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