GameStop Loses Its Proxy Fight as Activist Investor Candidates Win Board Seats
It appears GameStop (NYSE: GME) failed to make its case to investors during a proxy fight with activist hedge funds Hestia Capital Partners and Permit Capital Enterprise Fund. According to preliminary voting results, both hedge funds' nominees have been elected to GameStop's board.
Both sides had previously presented their cases to stockholders in several no-holds-barred letters that questioned the opposition's competence and motives. The activist investors condemned GameStop's current leadership, stating the company's board candidates are "two long tenured directors with largely irrelevant skillsets, no meaningful ownership and a track record of destroying over $2.5 billion in stockholder value." GameStop struck back, alleging Hestia's candidate Kurtis Wolf is completely unqualified and that "a vote for the Dissident Stockholders is a vote for Mr. Wolf's pocketbook at the expense of ALL stockholders."
Image source: Getty Images.
Source Fool.com
