Electronic retailing outhouse Circuit City (NYSE: CC) has lost more than 80% of its value over the last few years, and now lead director Mikael Salovaara has decided (subscription required) that he will condescend to meet with the head of Wattles Capital Management LLC, which owns 6.5% of the company's stock.
What a nice guy! This company's board of directors has presided over a pretty amazing destruction of shareholder value while rivals like Best Buy (NASDAQ: BBY) have prospered, and he's willing to take time out of his busily destructive day to meet with a major shareholder.
Mr. Salovaara said in a letter filed with the SEC that the company's nominating committee would not meet with Wattles' nominees for the board of directors, given that Wattles had conditioned the meeting on the company's agreement to support his nominees. That seems like an unreasonable request -- why should there be special conditions for a conversation? -- and Mr. Salovaara wrote that "I trust that we can resolve this point in a personal conversation."
This matter appears destined for a proxy fight, and you have to like Wattles' chances. Given the company's performance in recent years, most shareholders would probably support change of any kind.
Circuit City agrees to meet with Wattles - how kind of them!
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