Blockbuster urges votes against activist investor, says 2 firms support it

Blockbuster again urges ‘no’ on board activist

DALLAS — Blockbuster Inc. said Monday that two more proxy advisory firms support its position that its shareholders should not elect activist investor Gregory S. Meyer to its board.

Proxy Governance Inc. and Egan-Jones Proxy Services also said Meyer’s strengths are not relevant to the movie rental company’s needs at this time and he would be a distraction on the board, according to Blockbuster.

The company also again urged shareholders to vote for its proposals in its ongoing proxy fight with Meyer, who founded a DVD rental kiosk business in 2001 called DVDXpress. Meyer sold DVDXpress to Redbox operator Coinstar Inc., which has become a major competitor to Blockbuster.

Another proxy advisory firm, RiskMetrics Group, said last week that Blockbuster shareholders should elect Meyer.

Meyer has argued that Blockbuster doesn’t have a practical strategy for dealing with competition. He is trying to replace director Gary J. Fernandes, chairman of real estate investment company FLF Investments.

Shareholders are scheduled to vote on board nominees during the June 24 annual meeting.