PENN Entertainment (PENN) activist investor HG Vora Capital Management said Monday that the company's move to reduce the number of director seats up for election to two from three was "self-serving," and has "no legitimate corporate purpose."

The hedge fund said it had planned to nominate three director candidates at the company's annual general meeting to "restore accountability and proper oversight" following years of "poor judgment, failed transactions and value destructive actions."

PENN said Friday it planned to nominate two of HG Vora candidates, Johnny Hartnett and Carlos Ruisanchez, after discussions with the hedge fund.

HG Vora holds a 4.8% stake in the company.

PENN did not immediately reply to a request for comment from MT Newswires.

Shares were down 2% in recent trading.

Price: 15.83, Change: -0.32, Percent Change: -2.01