Chapman to Building Materials: Embrace rather than alienate shareholder's efforts to join board

By Lisa Kerner

Charlotte, N.C., Nov. 8 - Building Materials Holding Corp. investor Robert L. Chapman Jr. of Chapman Capital LLC notified the company of his appointment as a director to the board of Entertainment Distribution Co., Inc.

In a letter to the Building Materials board, Chapman compared how the company's "entrenched and chronologically advanced board has ostracized and excluded the advisor to its largest ownership block" versus Entertainment Distribution's "embracement of that same advisor via board inclusion."

Chapman's letter was included as part of a schedule 13D filing with the Securities and Exchange Commission.

Comparing the two companies' review of Chapman's candidacy for a director position, Chapman said Entertainment Distribution's scrutiny "was not the sham that Building Materials concocted for delivery during a brief hour."

Chapman added that the course that the Building Materials board has chosen under chairman and chief executive officer Robert Mellor's guidance "shall prove to have been terribly unwise when considered in the scheme of modern corporate governance," the letter stated.

It was previously reported that Chapman demanded the voluntary resignation of Mellor and suggested his interim replacement should be BMC West president Stanley M. Wilson.

Chapman Capital is a Los Angeles-based investment adviser with a reported 9% stake in the San Francisco-based building products and construction services company.

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