Lincoln National Convertible Securities Fund (LNV) Inactive
Filed: 16 Feb 05, 12:00am
Filing by Delaware Group Equity
Funds V
Pursuant to Rule 425 under the
Securities Act of 1933
Subject Company: Lincoln National
Convertible Securities Fund, Inc.
Commission File No. 811-04659
Delaware Investments/SM/
A member of Lincoln Financial Group/R/
2005 Market Street
Philadelphia, PA 19103-7094
FOR IMMEDIATE RELEASE
Contact: Christina Ward Priscilla Brown
Corporate Communications Investor Relations
Delaware Investments Lincoln Financial Group
215.255.1388 215.448.1422
Lincoln National Convertible Securities Fund
Announces Proposed Reorganization into Delaware Dividend Income Fund
PHILADELPHIA, FEBRUARY 16, 2005--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
- more-
Delaware Investments is the marketing name for Delaware Management Holdings,
Inc. and its subsidiaries.
www.delawareinvestments.com
Delaware Investments/SM/
A member of Lincoln Financial Group/R/
2005 Market Street
Philadelphia, PA 19103-7094
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,
www.sec.gov. The Fund's shareholders will also be able to obtain copies of these
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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.
-- 30 --
Delaware Investments is the marketing name for Delaware Management Holdings,
Inc. and its subsidiaries.
www.delawareinvestments.com