Take-Two Investors Looking To Shake Up Management

Several investors of Take-Two Interactive Software are seeking the power to replace CEO Paul Eibeler and review Chief Financial Officer Karl Winters' employment status, they said in a filing on Wednesday, sending the company's shares up 16%.

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.