Three members of Take-Two’s Board of Directors will leave their roles following a request from stockholder Carl Icahn, who holds a 11.3 per cent stake in the firm.
Chief executive officer Ben Feder is one of the the three to step down, although will continue his CEO role for the publisher. Grover C. Brown and John F. Levy will also make way.
Icahn has nominated SungHwan Cho, his son Brett Icahn and James L. Nelson. An election will take place at the 2010 annual stockholder meeting.
The move sparks further speculation that Icahn could force a buyout of the company.
I want to express my gratitude to Ben, Grover and John not only for their dedicated service to Take-Two stockholders but also for their very gracious decision not to stand for re-election so that we can facilitate a change in Board composition," said Take-Two chariman Strauss Zelnick.
"It’s important to note that Mr. Icahn did not request that these directors in particular step down; they were willing to continue in their role but agreed not to stand for re-election in keeping with their commitment to the Company and desire to put the best interests of stockholders first, as they have done throughout their tenure on the Board.”
Advancing our stockholders’ interests is the Board’s guiding principle, and it’s in that spirit that we’ve undertaken a change in board representation. We have much to accomplish at Take-Two in the year ahead, and we welcome the new directors who each have experience in the entertainment industry and will help us achieve our objectives.”
Carl Icahn added: Take-Two has industry-leading development talent and intellectual property. I’m a firm believer in the long-term potential of the Company, and from a corporate governance point of view I applaud the current board for its responsiveness.”