Tuesday, February 06, 2007

Home Depot Proxy Fight Is Settled - New York Times

Home Depot Proxy Fight Is Settled - New York Times:
"Home Depot...reached an agreement...with a large shareholder, Relational Investors, that will prevent a proxy fight over the company’s strategy.

In return, the shareholder, Relational, a San Diego investment fund, will receive a seat on the company’s board and four directors involved in hiring Robert L. Nardelli, the recently dismissed chief executive, will leave the board in 2008. Under the settlement announced last night, a founder of Relational, David H. Batchelder, will join the Home Depot board on Feb. 22, and the investment fund will drop its proxy challenge, the two companies said in a joint statement."
Good for a class discussion of shareholder monitoring, proxy challenges, and even role of institutional shareholders.

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