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For the dissident shareholder's press release announcing the letter reported below, see

 

Wall Street Journal, October 18, 2010 article

 

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OCTOBER 18, 2010, 9:48 A.M. ET.

Marathon Partners Urges Dover Motorsports To Consider Options


Marathon Partners LP urged Dover Motorsports Inc.'s (DVD) board to immediately appoint two independent directors and again urged the company to consider its options, including putting the raceway operator on the block.

Marathon, the company's largest outside shareholder, sent a letter to Dover Motorsports' board after the company and sibling Dover Downs Gaming & Entertainment Inc. (DDE) broke off their roughly $62.9 million merger deal on Wednesday amid strong shareholder opposition from shareholders of both companies.

Marathon last week called it a "value-destroying transaction" meant to prolong Chairman Henry Tippie's "dominion."

On Monday, Marathon managing member Mario D. Cibelli said, "What little remained of the board's credibility is now all but lost, especially as far as representing the best interests of the company's unaffiliated stockholders is concerned."

Cibelli called on the board to "provide full and complete accounting to stockholders of all funds spent in furtherance of this folly" and recommended the appointments of two directors recommended by its unaffiliated shareholders to help assure their interests are "fully and fairly considered" in any board actions.

"A return to the status quo is unacceptable," Cibelli said.

A Dover Motorsports spokesman wasn't immediately available to comment. The company's shares were up 3 cents in early trading at $1.85. They are down 11% this year.

-By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com

 

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