Breeden makes play for Block board

Former Securities and Exchange Commission chairman and activist trader Richard C. Breeden is seeking three board seats at H&R Block Inc. Voicing his disappointment in the tax preparer's poor financial performance, the chairman and executive of Breeden Capital Management LLC said he will seek election to the board of the Kansas City-based tax preparer, along with two other individuals to be announced by Breeden Partners later this week. Three of the company's 11 incumbent directors are up for re-election at its annual meeting on September 6. The news sent stock up as much as 6.8% yesterday morning before it closed up $1.02, or 4.64%, to $23.02. Breeden Partners and affiliated domestic and offshore investment funds managed by Breeden Capital Management LLC owns six million H&R Block shares, which account for 1.86% of the company. H&R Block posted an $85.6 million net loss for the quarter ended April 30, stemming from a writedown of its Option One Mortgage Corp. subprime lending unit < http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20070621/REG/70621005/-1/BreakingNews04&ht=> (InvestmentNews, June 21) . H&R Block is also selling its Option One subprime unit to private equity firm Cerberus Capital Management for as much as $800 million. Mr. Breeden was chairman of the SEC from 1989 to 1993 and was appointed to the board of Overland Park, Kan.-based Applebee's International Inc. after complaining about poor performance (InvestmentNews, December 12) .