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