Atari Tries to Cope With Infogrames Offer

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Last week, it came to light that Infogrames made an offer to acquire all the Atari stock it did not already own. Atari is considering its response.
Infogrames originally requested that Atari respond by March 11. Atari's Board of Directors formed a special committee to evaluate the offer. Obviously, Atari determined that it would not be able to respond by March 11, and has hired Duff & Phelps to advise it and evaluate the proposal.

Atari did not relate the criteria it is using to evaluate the proposal, but the problem is probably related to the price Infogrames offered. At the time of the offer, the promise of $1.68 per share was around the market price of Atari's stock. Were the offer at a premium to the trading price, Atari could argue that such a transaction is in the best interest of its shareholders. At the price Infogrames offered, Atari is probably figuring out how it can return the company to its corporate masters at Infogrames without inviting shareholder lawsuits.

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This page contains a single entry by Editor published on March 12, 2008 2:20 PM.

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