HMV Drops Rights Offer Amid Shareholder Concern, Observer Says

HMV Plc, the U.K. retailer of books, music and DVDs, postponed a rights offer because of shareholder hostility to the plan, the Observer reported, citing advisers to the company and unidentified investors.

The retailer faces a boycott by investors to an additional share sale after it lowered its forecast for pretax profit for the third time last week, the newspaper said.

To contact the reporter on this story: Stephen Morris in London at smorris39@bloomberg.net.

To contact the editor responsible for this story: Dick Schumacher at dschumacher@bloomberg.net

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