Blockbuster investors to vote on reverse split

[March 30, 2010]  NEW YORK (AP) -- Struggling movie rental company Blockbuster Inc. said Monday it will ask its shareholders to vote on a reverse stock split at its upcoming annual meeting on May 26.

Blockbuster, which earlier this month warned it may have to file for Chapter 11 bankruptcy protection, also said it was notified by the New York Stock Exchange that its average market capitalization fell below $75 million over a 30 trading day period. This means the company has 45 days to show to the NYSE it can regain listing compliance over the next 18 months.

At the annual meeting, Blockbuster shareholders will be able to vote on the combination of the company's Class A and Class B common shares into a single class and the approval of a reverse stock split.

Shares of Dallas-based Blockbuster closed down 3 cents at 28 cents.

[Associated Press]

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