Board asks no sale of Magna stock

The board of directors of MI Developments, the majority shareholder in the racing company Magna Entertainment Corp., is recommending that its shareholders reject a proposal to sell its stake in Magna Entertainment.

The proposal, made by Greenlight Capital, the major shareholder in MI Developments, is scheduled to be voted on by MI Developments shareholders at a meeting on May 4. Under the proposal, MI Developments would be required to sell or distribute its 59 percent equity interest in Magna Entertainment, which has lost more than $200 million over the past three years.

In a statement, Douglas Young, the chairman of a committee that MI Developments put together to evaluate the proposal, said that selling the equity stake "is not in the best interests of the company or its shareholders."