By Svea Herbst-Bayliss

BOSTON (Reuters), – Anchor Capital and Boston Partners were among the long-term shareholders that urged toymaker Hasbro Inc (NASDAQ) to reorganize the board, at least one of which is nominated by investors. To settle a proxy battle with Alta Fox Capital Management, an activist investor firm.

Boston Partners is a shareholder in Hasbro with a 2.26% interest and funds $96 billion. According to it, a settlement will benefit shareholders and Hasbro.

“At the moment, we recommend to our Governance Committee that they vote in favor Alta Fox nominees,” William Butterly (Boston Partners’ general counsel, director of sustainability, and engagement), said.

Butterly suggested that Hasbro should improve its capital allocation and shareholder returns. Butterly also said that a “greater refreshment of the board was necessary in order to bring about positive change at company levels.” His firm was concerned by the fact that Hasbro increased the number of board members to 13 from 11, instead of replacing them with two additional directors.

Anchor Capital owns a 0.3% stake in Hasbro. His message echos the one that Anchor Capital sent to Hasbro’s board. According to two people familiar with the conversation, Anchor has held Hasbro shares since 1996. He stated that the board would be better served if a shareholder-supported director joined the group.

Anchor did not say how it would vote in proxy contest.

Sources requested anonymity in order to keep the correspondence confidential.

Alta Fox Capital Management revealed a 2.5% share in the maker of Monopoly, Play-Doh, and My Little Pony. The company also said that it would love a few more board seats and to explore the option of spinning off the Wizards of the Coast gaming business. The company has now reduced the number of nominees to three.

At Hasbro’s Annual Meeting on June 8, investors will have the opportunity to vote for who is on Hasbro’s board.

Ancora Holdings Inc revealed a 1% stake at Hasbro this month and asked the company to look into a partial or full sale Entertainment One. Entertainment One is a unit which focuses on producing television programs and other content. Ancora called for a settlement between Alta Fox and the board.

Anchor Capital didn’t respond to our request for comment.

Representatives from Alta Fox, Ancora and other organizations declined to comment.

According to a spokesperson for Hasbro, the board is “always open to listening to shareholder perspectives” and has added Liz Hamren to its board as “responseto investor feedback”. She stated that Hasbro added five independent directors to its board since 2016, in addition Chris Cocks who was newly appointed CEO.