Take-Two Investors Looking To Shake Up Management
Several investors of Take-Two Interactive Software
OppenheimerFunds Inc., S.A.C. Capital Management, Tudor Investment Corp., D.E. Shaw Valence Portfolios, and ZelnickMedia Corp. have pooled their stakes in the video game company.
They plan to nominate a slate of six directors to the board at an upcoming annual meeting, including Strauss Zelnick, Benjamin Feder, Jon J. Moses, Michael Dornemann and Michael James Sheresky, the group said in a filing with the U.S. Securities and Exchange Commission.
The sixth person may be Grover Brown or John Levy, who are current independent directors of Take-Two, they said.
The company's shares rose as high as $20.49 in early trading on the Nasdaq from the Tuesday close of $17.61.
The group also plans to vote that Take-Two approve a management agreement with ZelnickMedia, which includes Zelnick, a former chief executive ofBMG Entertainment, and Feder, a former executive at News Corp.
Take-Two has wowed gamers with video games such as the "Grand Theft Auto" series, but worried many investors with financial and management missteps.
A scandal over backdating of stock options engulfed the company last year as it was starting to recover from a controversy over undisclosed sexually explicit content in its blockbuster "Grand Theft Auto: San Andreas" game.
In June 2005, four top executives paid $14 million to settle an SEC lawsuit alleging fraudulent accounting practices.