AFL-CIO urges Crown shareholders to reject board slate

WASHINGTON, Dec. 6 - A group of shareholders of oil and gas company Crown Central Petroleum, said on Wednesday shareholders should vote against board nominees proposed by management.

The four outside board members who Crown Central aims to replace have close ties to both management and Rosemore, a private company that unsuccessfully bid for Crown earlier this year, said the shareholders, which included labor union AFL-CIO and Crown Shareholders for Fair Value, in a statement.

Rosemore is Crown's largest shareholder and owned by the family of Crown Central Chief Executive, Henry Rosenberg. Last August, shareholders voted against Rosemore's takeover bid for Crown Central, in favor of a tender offer from Apex Oil Co. On Nov. 1, Crown Central extended the deadline to Oct. 31 for Apex to start a previously announced tender offer. Apex had offered to buy all of Crown's outstanding shares at a cash price of $10.50 a share.

Baltimore-based Crown Central would be left with only three outside directors, less than half the board, if the proposed slate of nominees are approved, the AFL-CIO said.