Gaylord Shares Surge On Deal With Key Shareholders

NEW YORK (AP) — Shares of Gaylord Entertainment Co. surged on Tuesday after the convention resort operator announced it would allow two key shareholders to increase their stakes in the company and nominate directors to its board.

Gaylord shares jumped $1.36, or 28 percent, to $6.26 in late trading, joining a huge rally in the broader market after Citigroup Inc. announced it had operated at a profit during the first two months of the year. Gaylord's stock has traded between $4.76 and $66.96 during the past 52 weeks.

Gaylord agreed to boost the size of its board to 11 members and nominate two representatives of its largest shareholder, TRT Holdings Inc., and two representatives of money manager GAMCO Asset Management Inc. TRT's board designees include Texas billionaire Robert Rowling, who had criticized the company for excessive corporate spending.

Gaylord also said it will also increase the ownership trigger on its shareholder rights plan, or "poison pill," to 22 percent from 15 percent. A "poison pill" is intended to make a hostile takeover more expensive for the buyer.

TRT currently owns a 14.9 percent stake in the Nashville, Tenn.-based company. GAMCO and its affiliates hold a 13.4 percent stake.