Post Founder Mounts Proxy Effort

John Williams, founder and director of Post Properties, has initiated a proxy effort to elect his nominees to the Atlanta-based multifamily real estate investment trust's board of directors.Mr. Williams - also the REIT's largest shareholder, with ownership of about 7.3% of Post shares outstanding, according to his filing with the Securities and Exchange Commission - has proposed George R. Puskar, Roy E. Barnes, Paul J. Dolinoy, Thomas J.A. Lavin and Jansen Noyes III as nominees for the Post board, in opposition to those proposed by Post's incumbent board. If elected, Mr. Williams' nominees will submit a plan "to raise the quality of corporate governance, improve operating performance and enhance shareholder value," according to Mr. Williams. In response to this development, Moody's Investors Service has placed the ratings of Post Properties "under review for downgrade," citing concerns about the effects of the likely proxy fight on the REIT's "strategic direction and financial profile." The ratings of Post Properties' preferred stock, senior unsecured debt and senior unsecured debt shelf are impacted by the Moody's action. Moody's has had a negative rating outlook on Post since February 2002, the rating agency reports.