Board Proposes Sale of Hollywood Park : Horse racing: The move is designed to thwart a takeover by a dissident shareholder.

A majority of the board of the company that operates Hollywood Park announced today that it wants to put the race track up for sale--a move designed to thwart a takeover by a dissident shareholder.

The park was a playground for the stars during Hollywood’s heyday four decades ago but later experienced losses and became saddled with debt. In recent months, however, there have been signs of a turnaround, making a sale potentially profitable for shareholders.

The proposal to sell the park was made by a committee comprising a majority of the board of directors of Hollywood Park Operating Co., which runs the track. The committee asked the board of Hollywood Park Realty Enterprises, which owns the land on which the park is located, to agree to the sale.

Although the operating company and the company from which it leases the land on a long-term basis are separate corporations, their stocks are paired.

A source close to the operating company board majority said that the park could be put up for sale even without the consent of the company that owns the land but that it would be considerably less attractive to a buyer in those circumstances.

The proposal to sell the park coincides with an attempt by dissident shareholder R. D. Hubbard, a glass industry executive, to gain control of the facility. Sources familiar with Hollywood Park’s financial situation said a sale would stave off such a takeover.

Hubbard, the owner of race tracks in Woodlands, Kan., and Ruidoso Downs, N.M. Hubbard owns 9.9% of the track’s stock, the maximum allowable, and has told the board that he wants to run the track.

In a letter to the board of directors of Hollywood Park Realty Enterprises, Marjorie L. Everett, chairman of the board and chief executive officer of the operating company, asked that the two entities join forces immediately to launch the sale process.

There was no immediate response from Hollywood Park Realty Enterprises.

The Hollywood Park Companies’ net income for the third quarter ending Sept. 30 increased to $1.36 million, compared to a loss of $567,000 for the same period a year ago.