Penn Entertainment shareholders elect two HG Vora nominees to board amid proxy fight

June 17 (Reuters) - Penn Entertainment PENN.O said on Tuesday its shareholders had elected two out of three HG Vora nominees to the company's board, amid a proxy fight with the activist investor.

Penn shareholders elected Johnny Hartnett and Carlos Ruisanchez to serve on the casino operator's board, the company said, citing preliminary voting results from its annual meeting.

"We are intently focused on driving profitability in our Interactive segment and growth across the business as we continue strengthening the company's balance sheet and liquidity position," Penn said.

In April this year, HG Vora pushed ahead with a proxy fight to try and elect all three of its director candidates after Penn said it would appoint only two of the nominees to its board.

Penn had said it was shrinking the board by one to eight directors, leaving only two seats available to be voted on at the meeting in June.

The company's shares have fallen nearly 85% from its high in 2021 and the hedge fund, led by investor Parag Vora, had criticized the Penn management over capital allocation and what it called poor acquisitions.

Earlier this month, proxy advisory firm ISS urged shareholders of Penn to elect all three nominees of HG Vora to its board ahead annual shareholders meeting.