Dillard's wards off proxy challenge
Retailer Dillard's Inc said on Tuesday that it reached an agreement with a shareholder group that will avoid a proxy fight at its May annual meeting.
The retailer said it agreed to nominate four candidates - all of whom have retail experience - for election as directors at the meeting. Dillard's said hedge fund managers Barington Capital Group and Clinton Capital Group agreed to stop their efforts to elect a slate of four nominees to the board.
Dillard's also said it plans to close underperforming stores, and will cut unnecessary costs and subject future commitments for new stores to strict return-on-capital requirements set by its board and management.
Barington Capital, which represents investors that own about 5.6 percent of Dillard's stock, had said in mid-March that it planned to nominate four people for election to the retailer's board.
Agencies
(China Daily 04/03/2008 page16)
