Investor Enraged at Atari Board Shake-up
By Shawn on Tuesday, October 16th, 2007 at 4:23 PM PST In Atari, Games Industry
Coghill Capital Management, a major investor in Atari, is infuriated with the company’s recent shake-up of the board of directors.
Infogrames recently abruptly dismissed five board members replacing them with new members of their choosing. CCM has taken this as yet another affront to public share holders.
“Coghill Capital Management has contacted the Issuer’s Board of Directors to express its serious concerns regarding the removal of the Issuer’s five independent directors by Infogrames Entertainment,” said the company in a SEC filing.
“These actions were taken without cause, without notice and without a shareholders’ meeting, and in our opinion is just the culmination in Infogrames’ treatment of the Issuer as its private source of assets and funds, and its oppression of the public shareholders,” it detailed.
CCM has backed up its claims by issuing Infogrames a letter with official demands.
“The Letter demands that the Issuer’s Board of Directors immediately reconstitute itself with a majority of independent directors, re-establish an independent audit committee, put an end to the sweetheart agreements with Infogrames, and seek compensation from Infogrames and the Issuer’s management for the serious damage they have caused both the Issuer and its public shareholders,” states CCM.
