Icahn Names Three Board Positions at Take-Two

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Take-Two InteractiveAs followers of Take-Two Interactive may know, Carl Icahn has been busily acquiring the company's publicly traded stock, and now holds over 11% of Take-Two's shares. As a result, Strauss Zelnick and the folks who originally seized control of Take-Two have been forced to bargain away control over certain slots on the Board of Directors:
In return for electing three members chosen by Icahn, Icahn will not engage in any proxy battles that might oust Zelnick's chosen board members or result in a hostile takeover of the company. To that end, three of the existing board members (including Chief Executive Officer Ben Feder) will step down from the Board of Directors.

This is, simply, brazen appeasement. Current Take-Two leadership is hoping to buy off Icahn's cooperation. Hopefully, this will result in better company management for all Take-Two investors, but it raises the possibility that company management will simply cater to the needs and wants of its biggest investors.

Supporting the obvious conclusion that this is appeasement, if Icahn's holdings drop to less than 5% of Take-Two's outstanding stock, his three board members must resign immediately.

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This page contains a single entry by Editor published on January 21, 2010 6:15 AM.

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