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Martha Stewart Not Resigning From Company

Aired June 03, 2003 - 15:20   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


JUDY WOODRUFF, CNN ANCHOR: And now we want to turn quickly to New York City to our Fred Katayama for some developments in the case, alleged case, against businesswoman Martha Stewart. Fred, what do you have for us?
FRED KATAYAMA, CNN CORRESPONDENT: Well, Judy, the annual shareholders meeting just ended minutes ago, and Martha Stewart is not resigning from her post as chairman and chief executive of her company, Martha Stewart Living Omnimedia. That word came from a director of the board, Arthur Martin, who is also a retired executive from Sears Roebuck and Company.

He said, when asked by a shareholder at the meeting, he said that it's categorically untrue the rumors that Martha Stewart is stepping down. She will remain as chairman and chief executive officer. And here's what he had to say.

(BEGIN VIDEO CLIP)

ARTHUR MARTIN: A shareholder asked in the meeting if it was true that Martha had resigned as chairman and chief executive of the company. I responded that this was categorically untrue. Martha remains the chairman and chief executive of Martha Stewart Living Omnimedia.

(END VIDEO CLIP)

KATAYAMA: Now, Martha Stewart was not present at the meeting. She taped a video. And in her video presentation that was taped earlier this morning she apologized to the shareholders for not appearing.

Some shareholders who saw the video told me that she said that -- she apologized because she didn't want to serve as a distraction for today's annual shareholders' meeting. Stewart also apologized to her shareholders and expressed her gratitude for their support.

Now Martha Stewart has this cult of personality. She's known as a (UNINTELLIGIBLE) domesticity. And this annual meeting sort of served as a magnet for a lot of her supporters to come in. Over on Wall Street, the stock of her company fell 17 percent today. It is trading at half levels of what it was last year.

But a lot of her supporters, investors and shareholders, attended this meeting, around 70 to 80. And one shareholder got up and expressed his support for Martha Stewart. That was greeted by a loud ring of applause, I'm told. The chairman went on to say that the company has $180 million in cash and a lot of assets. Back to you, Judy.

WOODRUFF: All right. Fred Katayama reporting for us live from New York. Thanks very much.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com






Aired June 3, 2003 - 15:20   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JUDY WOODRUFF, CNN ANCHOR: And now we want to turn quickly to New York City to our Fred Katayama for some developments in the case, alleged case, against businesswoman Martha Stewart. Fred, what do you have for us?
FRED KATAYAMA, CNN CORRESPONDENT: Well, Judy, the annual shareholders meeting just ended minutes ago, and Martha Stewart is not resigning from her post as chairman and chief executive of her company, Martha Stewart Living Omnimedia. That word came from a director of the board, Arthur Martin, who is also a retired executive from Sears Roebuck and Company.

He said, when asked by a shareholder at the meeting, he said that it's categorically untrue the rumors that Martha Stewart is stepping down. She will remain as chairman and chief executive officer. And here's what he had to say.

(BEGIN VIDEO CLIP)

ARTHUR MARTIN: A shareholder asked in the meeting if it was true that Martha had resigned as chairman and chief executive of the company. I responded that this was categorically untrue. Martha remains the chairman and chief executive of Martha Stewart Living Omnimedia.

(END VIDEO CLIP)

KATAYAMA: Now, Martha Stewart was not present at the meeting. She taped a video. And in her video presentation that was taped earlier this morning she apologized to the shareholders for not appearing.

Some shareholders who saw the video told me that she said that -- she apologized because she didn't want to serve as a distraction for today's annual shareholders' meeting. Stewart also apologized to her shareholders and expressed her gratitude for their support.

Now Martha Stewart has this cult of personality. She's known as a (UNINTELLIGIBLE) domesticity. And this annual meeting sort of served as a magnet for a lot of her supporters to come in. Over on Wall Street, the stock of her company fell 17 percent today. It is trading at half levels of what it was last year.

But a lot of her supporters, investors and shareholders, attended this meeting, around 70 to 80. And one shareholder got up and expressed his support for Martha Stewart. That was greeted by a loud ring of applause, I'm told. The chairman went on to say that the company has $180 million in cash and a lot of assets. Back to you, Judy.

WOODRUFF: All right. Fred Katayama reporting for us live from New York. Thanks very much.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com