Image, Lions gate saga.It's been a tumultuous month for Image Entertainment Inc., the Chatsworth DVD DVD: see digital versatile disc. DVD in full digital video disc or digital versatile disc Type of optical disc. The DVD represents the second generation of compact-disc (CD) technology. distributor. The company has been in a quarrel with one of its largest shareholders, the Santa Monica movie maker Lions Gate Entertainment
An independent shareholder advisory group called Institutional Shareholder Services, however, rejected five of the candidates and last week Image struck back, asking shareholders to re-elect re·e·lect also re-e·lect tr.v. re·e·lect·ed, re·e·lect·ing, re·e·lects To elect again. re the entire board sans the Lions Gate nominees. The move follows a bid by Lions Gate last year to buy out Image, which the company rejected. In a letter to stockholders, Image CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and Chairman Martin Greenwald said the hostile takeover Hostile Takeover A takeover attempt that is strongly resisted by the target firm. Notes: Hostile takeovers are usually bad news, as the employee moral of the target firm can quickly turn to animosity against the acquiring firm. is hurting the company, which in fiscal 2005 tallied net earnings of more than $5 million. "This year, with the distraction, cost and expense of Lions Gate's repeated attacks, we have become unprofitable," he said. "Our ongoing analysis of strategic alternatives will seek to maximize value for all of our stockholders, Not to placate a single dissident." |
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