Posts Tagged ‘UniteHere’

Penn National Growing Pains?

by , Jun 16, 2011 | 1:12 pm

Exactly two weeks to the day after Penn National Gaming, Inc. (Nasdaq: PENN) announced its acquisition of M Resort, a casino workers labor union, UNITE HERE!, issued the following press release that might be of special interest to investors who paid nearly $40/share. (So far, after short-lived giddiness, their stake continues to drop like a rock.)

Read below for the official announcement:

The overwhelming majority of shareholders at Penn National Gaming, Inc. voted last week to change the way the company’s directors are elected. 40 million out of 67 million shares were cast for a shareholder resolution that nominees to the board must receive a majority of the votes cast in order to be seated. Under Penn’s current bylaws, a nominee needs only a single affirmative vote to be elected in uncontested director elections.

“A majority vote standard transforms the director election process from a symbolic process to a meaningful voice for shareholders,” ISS Proxy Advisory Service wrote in a report criticizing Penn National Gaming, Inc. on May 23, 2011. More…