Last month, it was reported that investor Carl Icahn took an 11.3% stake in publisher Take-Two. Today, Icahn is using his power to change the makeup of Take-Two's Board. Icahn requested that Ben Feder, Grover C. Brown, Esq., and John F. Levy all be replaced, and he's nominated SungHwan Cho, his son Brett Icahn and James L. Nelson.
Strauss Zelnick, Chairman of Take-Two commented, "I want to express my gratitude to Ben, Grover and John not only for their dedicated service to Take-Two stockholders but also for their very gracious decision not to stand for re-election so that we can facilitate a change in Board composition. It's important to note that Mr. Icahn did not request that these directors in particular step down; they were willing to continue in their role but agreed not to stand for re-election in keeping with their commitment to the Company and desire to put the best interests of stockholders first, as they have done throughout their tenure on the Board."
"Take-Two has industry-leading development talent and intellectual property," said Carl Icahn. "I'm a firm believer in the long-term potential of the Company, and from a corporate governance point of view I applaud the current board for its responsiveness."
Zelnick added, "Advancing our stockholders' interests is the Board's guiding principle, and it's in that spirit that we've undertaken a change in board representation. We have much to accomplish at Take-Two in the year ahead, and we welcome the new directors who each have experience in the entertainment industry and will help us achieve our objectives."
Sterne Agee analyst Arvind Bhatia said in a note that he views the Icahn request for three board seats as a positive. "At the minimum, we believe Mr. Icahn will ask for further streamlining of the company’s operations going forward," he said. As Icahn continues to make his presence felt, some believe he could be preparing to force Take-Two into a buyout.
1 Comments
January 21, 2010
wow, now that`s leverage!