Blockbuster board set for proxy battle
Shareholder Gregory Meyer wants to replace James CrystalThe co-founder of DVDXpress, which merged with Redbox last year, has initiated a proxy battle with Blockbuster, hoping to make himself a company director.
Gregory Meyer, who owns 620,000 Blockbuster shares, wants to replace James Crystal when shareholders vote at the annual meeting May 26. Crystal owns 140,000 Blockbuster shares.
Meyer said in a filing that one reason shareholders should oust Crystal is that he hasn't purchased shares on the open market, earning them only through his service on the board.
He also noted that when Crystal joined the board in 2007, Blockbuster stock was at $6.50 a share, and it closed Thursday at 28 cents.
"It is difficult to see what good Mr. Crystal's 'risk management' has done for Blockbuster shareholders over the past three years," Meyer wrote.
Blockbuster CEO Jim Keyes called Meyer's self-nomination "a costly and disruptive proxy contest," and he recommended that shareholders vote for Crystal.
News of the proxy battle comes as Carl Icahn disclosed that he sold all of his Class B shares and more than 48,000 Class A shares of Blockbuster. That leaves the billionaire financier with less than 4% of the company, down from about 17% recently.