Blockbuster again asks shareholders to back board
Dallas Blockbuster has again urged its shareholders to elect its preferred choice to the company board of directors.
According to a report Wednesday, the retailer is acting on a recommendation from an independent proxy advisory firm in asking its shareholders for support in the proxy fight with activist investor Gregory S. Meyer, who wants a seat on the board.
Meyer founded a DVD rental kiosk business in 2001 called DVDXpress and later sold it to Redbox operator Coinstar. It has become a major competitor to Blockbuster.
Shareholders are slated to vote on board nominees during the June 24 annual meeting. Meyer wants to replace director Gary J. Fernandes, the chairman of real estate investment company FLF Investments.
Blockbuster said that advisory firm Glass, Lewis & Co. suggested stockholders vote for all seven of Blockbuster's 2010 director nominees and the company's other proposals.
Blockbuster said the firm contends Meyer has "largely failed to provide shareholders with a cogent, practicable plan ... and, by extension, has failed to establish that his plans are superior to those disclosed and undertaken by the board."