June 9, 2025, 04:25h.
Vora Wages Last-Minute Campaign for Votes in Penn Corporation's Proxy Struggle
Last updated on: June 9, 2025, 04:25h.
Todd Shriber @etfgodfather - Read More - Financial - Gaming Business - Mergers and Acquisitions
Hedge fund HG Vora continues its relentless pursuit for control, pushing for its "Gold Card" directors slate in Penn Entertainment's (NASDAQ: PENN) annual showdown on June 17.
Just like a incorrigible politician pulling last-minute stunts before Election Day, HG Vora is going all-in with a desperate bid to rally support for its "Gold Card" directors slate before Penn Entertainment's annual meeting on Tuesday, June 17.
In a gritty letter to Penn investors today, HG Vora reminded them that their vote could make or break the future of the company by pushing for "game-changing directors" to shake things up in PENN's boardroom. The hot-button topic? Convincing Penn to add three of HG Vora's chosen candidates to its board. Penn seems to have agreed to two, but according to HG Vora, it isn't enough.
"The countdown is on! Cast your vote right now for our candidate powerhouse: William Clifford, Johnny Hartnett, and Carlos Ruisanchez. With their smarts and experience, they'll bring real shareholder-driven change to PENN's boardroom," HG Vora urged in their letter.
Clifford, who previously worked extensively with Penn from 2001 to 2014, is the one candidate the gaming company isn't willing to budge on. Penn reiterated their stance last Friday, branding Clifford's views on the industry as "old-fashioned" and warning that he could create more problems than solutions for the firm.
Vora Leans on Proxy Advisory Firms' Commentary
Victory came for Vora last week with the backing of two prominent proxy advisory firms—Egan-Jones and Institutional Shareholder Services (ISS). Vora made use of those firms' support in their Monday letter, stating: "Don't just listen to us, listen to the experts! Both ISS and Egan-Jones recommend voting for our handpicked candidates, and even Glass Lewis is on board with Hartnett and Ruisanchez."
The explosive battle between the hedge fund and the gaming company reached new heights when ISS advocated for all three Vora candidates to join Penn's board, while criticizing current directors for their questionable track record in online sports betting acquisitions.
Penn fired back, pointing out that ISS agreed that the gaming company had considered all three Vora candidates, but had rejected multiple resolutions from Vora in the past. The casino operator also noted that adding Hartnett and Ruisanchez would result in a board with 75% new members since 2019, implying a fresh and adaptable board.
Final Countdown for the Penn/Vora Showdown
With the annual meeting just around the corner, it seems likeall that's left for HG Vora and Penn to do is rally support for their respective agendas. Speculating about the le reportedly of major investors is a lost cause, as they've chosen to keep their cards close to their vests.
In recent weeks, Casino.org reached out to Advent Capital Management, David Einhorn's DME Capital Management, and the Donerail Group — the investor that last pressured Penn to consider selling itself — but none have responded to our requests for comment.
Vora and DME are Penn's fifth- and sixth-largest shareholders, respectively, with combined ownership of nearly 9% of the gaming company's outstanding equity.
In the financial world, HG Vora is investing heavily in the gaming business by pushing for changes within Penn Entertainment's board.
The June 17 annual meeting between Penn and HG Vora could see the addition of game-changing directors to Penn's boardroom, as suggested by HG Vora, with three candidates up for consideration.
If successful, the addition of these directors could bring about significant financial change for Penn Entertainment, given the experience and expertise they possess.
