The outcome would be a blow to Alta Fox, which had pushed the toymaker to spin off its Wizards of the Coast and Digital Gaming unit and criticized the way the company allocated its capital.
Early vote counts show Hasbro ahead of Alta Fox, which has named a director to the company’s 13-member board, the sources said.
Investors will be allowed to vote until Hasbro’s annual shareholders meeting begins on Wednesday and it is possible, although unlikely, that the outcome will change, the sources said, requesting anonymity ahead of an official announcement.
Hasbro declined to comment. Alta Fox did not immediately respond to a request for comment.
Hasbro, worth $12 billion, is known for making Monopoly and My Little Pony. Its stock price has fallen 18% over the past five years, while the S&P 500 index has climbed 70%.
Alta Fox, which owns a 2.5% stake in Hasbro, first appointed five directors to the company’s board of directors before revising its ambitions downward.
Proxy advisory firm ISS recommended shareholders not vote for Edward Philip, who has served on Hasbro’s board for 20 years, to signal their displeasure. The sources said Philip should be re-elected regardless.