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Post by Steve Farrelly @ 01:10pm 12/03/08 | 15 Comments
In more Take-Two Interactive news, the LA Times is reporting that one of the company's shareholders is suing for allegedly keeping the EA buyout bids a secret to increase senior management salaries.
The lawsuit, filed by Prickett, Jones & Elliott on behalf of Take-Two shareholder Patrick Solomon, alleges that the company's board rejected an undisclosed acquisition offer from EA and then acted to increase what its executives would be paid if the company were sold. The suit names Take-Two Executive Chairman Strauss Zelnick and Chief Executive Benjamin Feder, who are partners of investment company ZelnickMedia, which led a boardroom coup in March 2007 that wrested control of the video game company.
Sounds to me like someone is annoyed the buyout didn't occur (and why wouldn't you be? You stand to make a lot from a 64% increase on the closing premium). According to the news report, if ruled in favour of, the shareholder stands to get anywhere between 20 and 39 million from the suit.


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