The re-structuring of Atari's board by majority shareholder Infogrames has started a major session of high-pitched yowling among other stockholders.
Coghill Capital Management (CCM), which controls 9.4% of Atari (over 1.2 million shares), said of Infogrames actions, "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".
The information comes from an SEC filing made by CCM.
Additionally, CCM wrote a letter to Infogrames stating that the majority shareholder has (spelling and punctuation are as discovered in the filing):
CCM further stated, "We demand that the Board immediately reconstitute itself with a majority of independent directors". Fortunately for CCM, it got its wish. A new board, including four independent board members, has been put in place.
In short, if CCM is to be believed, Atari's struggles over the last few years have all been the result of bad parenting. Exactly how helpful this kind of comment is coming from a minority shareholder is yet to be seen.
Coghill Capital Management (CCM), which controls 9.4% of Atari (over 1.2 million shares), said of Infogrames actions, "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".
The information comes from an SEC filing made by CCM.
Additionally, CCM wrote a letter to Infogrames stating that the majority shareholder has (spelling and punctuation are as discovered in the filing):
"Entered into non-market distribution agreements that favored Infogrames and transferred additional cash and opportunities to Infogrames,
"Caused Nasdaq to begin procedures to delist Atari's shares, and
"Driven down Atari's stock price, to the detriment of the public shareholders.
"Paid its then Chief Executive Officer, Bruno Bonelli, for work that was for Infogrames' benefit and which should have been charged to Infogrames"
"Caused Nasdaq to begin procedures to delist Atari's shares, and
"Driven down Atari's stock price, to the detriment of the public shareholders.
"Paid its then Chief Executive Officer, Bruno Bonelli, for work that was for Infogrames' benefit and which should have been charged to Infogrames"
CCM further stated, "We demand that the Board immediately reconstitute itself with a majority of independent directors". Fortunately for CCM, it got its wish. A new board, including four independent board members, has been put in place.
In short, if CCM is to be believed, Atari's struggles over the last few years have all been the result of bad parenting. Exactly how helpful this kind of comment is coming from a minority shareholder is yet to be seen.
Companies:
Atari
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