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Clinton Group seeking change at ValueVision Media

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November 4, 2013 02:33 PM EST | AP

NEW YORK (AP) — Clinton Group Inc. wants ValueVision Media Inc. to hold a special shareholder meeting to potentially overhaul the home shopping company's board.

The investment firm, which owns more than 10 percent of ValueVision's outstanding shares, said that it plans to file paperwork Monday to demand the meeting.

Clinton plans to ask shareholders to remove the majority of the company's current directors, expand the board's size and elect seven of its own nominees. Its slate of nominees includes a number of leaders in the retail and entertainment industry, such as Mark Bozek, former CEO of Home Shopping Network, and Tommy Mottola, former chairman and CEO of Sony Music.

This follows a regulatory filing last week by Clinton Group saying that it bought up added shares in ValueVision saying that its stock is undervalued and suggesting that its CEO should be replaced and its board updated.

ValueVision, which operates television shopping network ShopNBC and related websites, was not immediately available to comment Monday.

However, it said last week in a statement in response to the regulatory filing that it was disappointed in the company's comments, particularly given its numerous conversations with Clinton. It said the company's leadership is confident in the trajectory of the business.

Clinton Group's president Gregory Taxin said Monday in a statement that ValueVision has suffered from "a lack of vision and strategy that has stunted its growth and caused it to severely under-perform its peers." The investment firm said it has repeatedly asked the company to make changes in its executive leadership and strategy and they have refused.

ValueVision has not reported an annual profit since 2008, according to FactSet.

Shares of ValueVision jumped 28 cents, a more than 5 percent gain, to $5.49 by early afternoon, far outpacing the rest of the market. Its stock price has nearly tripled thus far in 2013.