NEW YORK, April 28 (Reuters) - Hedge fund HG Vora said

on Monday it plans to push ahead with a proxy fight at Penn

Entertainment ( PENN ) to try and elect all three of its

director candidates, after the casino operator said it would

appoint only two of them to its board.

"HG Vora will nominate its three candidates and solicit

votes on their behalf," the hedge fund said in a statement.

On Friday, Penn Entertainment ( PENN ) said it intended to appoint

two of HG Vora's three proposed nominees and was shrinking the

board by one to eight directors, leaving only two seats

available to be voted on at the meeting in June.

The hedge fund called the casino operator's move a

"self-serving action" and suggested it was taken because the

company feared "losing three Board seats."

The step has "no legitimate corporate purpose and deprives

shareholders of their fundamental right to elect directors of

their choosing," the hedge fund said in a statement.

It also questioned whether the company will follow through

and name HG Vora candidates Johnny Hartnett and Carlos

Ruisanchez, executives with gaming industry experience, as

incoming directors. Just 10 days ago the company said it

intended to nominate "three different candidates," the hedge

fund said in its statement.

Penn did not immediately respond to a request for comment.

Penn's stock price has tumbled 87% from its high in 2021 and

HG Vora has criticized management for how it allocates capital

and what it has called poor acquisitions.

Originally three directors were planning to stand for

re-election but one of those will now retire from the board

immediately and the other two decided not to seek re-election,

the company said.

Penn operates 43 properties in 20 states, under brands

including Hollywood Casino, Ameristar, and Boomtown, according

to its website.