Blockbuster Spikes: Board Battle Rages

Blockbuster spikes as it throws its support around the newest candidate for director.
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(Blockbuster article updated with additional data.)

NEW YORK (

TheStreet

) --

Blockbuster

(BBI) - Get Report

stock is soaring, following a sell-off at the close on Thursday.

Blockbuster shares are currently gaining 18.9% to 33 cents, after the stock lost 20% of its value at the end of the day yesterday.

Blockbuster said on Thursday that it is throwing its support behind the latest candidate for director of the board being attacked by a dissident shareholder.

Blockbuster is supporting Gary J. Fernandes, former vice chairman of

Electronic Data Systems

, who is being targeted by Greg Meyer, a shareholder who is pursuing a proxy contest to get himself elected to the Blockbuster's board.

"Gary has an impressive record of business accomplishments and more valuable experience than Meyer," Ed Bleier, Chairman of the Board's Nominating/Corporate Governance Committee, said in a statement. The company said his extensive technology background will be beneficial in executing Blockbuster's future of digital downloads and kiosks.

Flashback Bankruptcy is Blockbuster's Only Hope

Gregory Meyer has asked shareholders to reject Blockbuster's board recommendations and add him as an independent voice instead.

-- Reported by Jeanine Poggi in New York.

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