Blockbuster investor rebellion

Sun May 1, 2005



Forget the final instalment of Star Wars, Revenge of the Sith. The biggest drama set to debut next month in the movies may well prove to be "Revenge of the Hedge Fund Managers" as a proxy war between embattled video-rental giant Blockbuster and a troupe of very unhappy investors, led by financier Carl Icahn, starts showing on Wall Street.

In addition to Icahn, the company's biggest shareholders are a bevy of brand-name hedge funds that include Perry Corp., Deephaven Capital Management, and HBK Investments. Also onboard are Atticus Capital, Contrarian Capital, Canyon Capital Advisors, and Glenview Capital Management..

Icahn and this assembled hedge fund pack are not too pleased with Blockbuster's share price, which has crumbled from a high of $17 last year to a 52-week low of $6.50 as revenues shrunk, merger hopes faded and reform plans languished. Such displeasure with the stock's performance seems to be setting the...

ISSN: 2151-1845 / CDC10004H

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