Looks like some monkey business may be going on at Atari.
http://biz.gamedaily.com/industry/news/?id=17782
Atari Shareholders None Too Pleased with Board Overhaul
Infogrames deliberately driving down share price?
Following the Board overhaul at Atari, some shareholders have expressed great displeasure with the move by Infogrames, claiming that the French publisher (Atari's parent company) engaged in some fishy business.
In an SEC filing, Atari investor Coghill Capital Management (which owns 1.2 million shares in Atari) alleged that Atari entered into distribution agreements that unfairly favored majority shareholder Infogrames. "Now, with the unilateral removal of the independent directors, Infogrames has denied Atari of the only possible checks and balances on its 'favorable' arrangements with Atari," said Coghill on Friday. "These acts on the part of Infogrames indicate an intent to drive down Atari's stock price even lower with the prospect of buying out Atari's public shareholders 'on the cheap.'"
Coghill has demanded that Atari "put an end to the sweetheart agreements with Infogrames." Ultimately, the investment group wants Atari to "immediately reconstitute itself with a majority of independent directors, re-establish an independent audit committee... and seek compensation from Infogrames and the Issuer's management for the serious damage they have caused both the Issuer and its public shareholders."
by James Brightman
