Forzani Group rejects hedge fund's proxy demands

Date: Friday, May 15, 2009
Author: Scott Anderson, Reuters

Forzani Group (FGL.TO: Quote, Profile, Research) recommended on Thursday that shareholders oppose a bid from a New York-based hedge fund attempting to nominate its own members to the board.

The Canadian sporting-goods retailer said Crescendo Partners, which owns about 5 percent of the outstanding shares, "failed to provide a compelling rationale to support its demands and failed to identify any particular business initiatives."

The fund was requesting that it be allowed to appoint two of its own members to the 10-member board.

Forzani also said the plan did not appear to be supported by a large percentage of its shareholders.

"Based on a number of factors, the board unanimously determined that the company and its shareholders would be best served by denying Crescendo's extraordinary demands," Forzani said in a release.