Coghill Questions ‘Sweetheart Agreements’ Between Atari, Infogrames

Oct 17 2007 | 8:21am ET

Coghill Capital Management is in no mood for fun and games with Atari or its controlling shareholder Infogrames Entertainment. The activist hedge fund shop recently sent a letter to Atari “to express its serious concerns” regarding Infogrames’ sudden removal of five independent directors from Atari.

On Oct. 8, Atari announced that Infogrames removed James Ackerly, Ronald Bernard, Michael Corrigan, Denis Guyennot, and Ann Kronen from its board of directors effective as of Oct. 5. A week later, Coghill sent a letter to the iconic game producer calling the moves by Infogrames “without cause, without notice and without a shareholders' meeting, and in our opinion is just the culmination in Infogrames' treatment of the Issuer as its private source of assets and funds, and its oppression of the public shareholders.”

The letter went on to demand that Atari’s board “immediately reconstitute itself with a majority of independent directors, re-establish an independent audit committee, put an end to the sweetheart agreements with Infogrames, and seek compensation from Infogrames and the Issuer's management for the serious damage they have caused both the Issuer and its public shareholders.”

This week, Atari responded by announcing four new independent board members to join incumbents Evence-Charles Coppee, Jean-Michel Perbet and Thomas Schmider, and a new chief restructuring officer to evaluate and implement “strategic and tactical options through the restructuring process of the company.”

Coghill currently has a 9.4% stake in Atari.

 


In Depth

Q&A: Portfolio Advisors' Brian Murphy On The Advantages of A Private Markets Platform

Jan 2 2018 | 11:05am ET

Most private markets firms reference their platforms as a source of competitive...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Steinbrugge: The Top Hedge Fund Industry Trends for 2018

Jan 2 2018 | 12:22pm ET

Each year, Don Steinbrugge’s Agecroft Partners compiles the insights gained...

 

FINalternatives Trending

From the current issue of