Hollywood Entertainment, the vidstore chain that’s the target of takeover bids, said it has been notified by the Nasdaq Stock Market that its shares may be delisted by the exchange Wednesday.
The company said in a statement that it received a letter from Nasdaq on Jan. 3 saying the action would be taken because it hadn’t held an annual meeting in 2004 and hadn’t solicited proxies for one. It said it would “take any steps required” to avoid delisting and has requested a hearing with the exchange.
Delisting would make Hollywood’s shares harder to buy and sell because they would have to trade over-the-counter, a more cumbersome procedure than the highly automated Nasdaq.
Hollywood Entertainment said it didn’t hold a meeting because it planned to call a session to approve the company’s acquisition by buyout firm Leonard Green & Partners. That meeting never took place after rival Blockbuster in October topped Leonard Green’s bid. Blockbuster said last month it may raise its offer and begin a hostile takeover bid this month.
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Daniel Burch, a spokesman for Wilsonville, Ore.-based Hollywood Entertainment, declined to comment further.
Shares of Hollywood Entertainment fell 7¢ to $13.05 Friday in Nasdaq Stock Market composite trading. Shares have risen 4.2% in the past year.