Blockbuster issues rebuke of Meyer

Dissident stockholder is seeking a board seat

NEW YORK -- Blockbuster on Monday urged shareholders to vote for the company's board nominees and issued a sharp rebuke of dissident stockholder Gregory Meyer who is seeking a board seat.

The board of the video rental giant reiterated that Meyer "is not qualified to serve on the board and that his election would pose a risk to the future of our company."

Blockbuster reminded shareholders that the company faces various challenges, such as liquidity problems and heated competition, "all of which have no quick fixes or easy solutions."

"Your board and management have worked diligently to respond to these challenges and save Blockbuster from the fates of Movie Gallery and Hollywood Video," the company board said. "We are mid-stream on a comprehensive, focused strategy to recapitalize the company and transform Blockbuster into the leading, multi-platform provider of media entertainment."

Meyer would only be a disruptive force on the board, it concluded.

Blockbuster also took issue with the dissident's claims that he is qualified and has relevant experience to join the board. "The fact is that Meyer operated a nominal kiosk company, which he sold long ago, and his financial 'expertise' is limited to knowledge of fixed-income securities," the company's board said.