Relational Investors Submits Proposal for Changes at Home Depot (HD)
In a recent letter sent to Home Depot Inc. (NYSE: HD), disclosed by the company today, 0.64% holder Relational Investors LLC submitted a shareholder proposal to be considered at the company's 2007 Annual Meeting.
In the proposal, Relational Investors requested that the Board of Directors form a committee comprised exclusively of independent directors to evaluate the strategic direction of the Company and the performance of management, with duties to include studying strategic alternatives for the Company, including a major operational restructuring and/or recapitalization, a partial or complete sale or buyout of the Company, and/or a major recomposition of the executive team.
Relational Investors said it is submitting the Proposal because it believes there is opportunity for substantial appreciation in the value of the stock if the proposed changes are made.
In response to the proposal, Home Depot said it will oppose the formation of the committee but will accommodate a meeting with the firm to be arranged shortly after the first of the year.