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Breeden Capital Management Seeks Greater Role at H&R Block.

Mortgage Servicing News

| October 01, 2007 | COPYRIGHT 2007 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

GREENWICH, CT -- Breeden Capital Management, an investment fund manager here, has won the backing of three additional proxy firms in its effort to elect three nominees to the board of H&R Block, parent of troubled subprime lender Option One Mortgage.

Breeden said that the firms of Egan Jones, Proxy Governance and Taft-Hartley Advisory Services recommended that shareholders elect the Breeden nominees at an upcoming H&R Block annual meeting. Earlier, Breeden had said that Institutional Shareholder Services and Glass Lewis & Co. had also recommended the election of the Breeden nominees to H&R Block's 11-member board.

In its analysis, Glass Lewis wrote that in its opinion "the extended underperformance of the company's operations and share price warrants a change to the board of directors." Glass Lewis went on to say that a majority of H&R Block's board members have served on the board for at least five years and the board has failed to conduct a "major overhaul of the management team during that time."

Taft-Hartley wrote that the company's underperformance goes "above and beyond the company's recent difficulties arising from its mortgage ...

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