INFOGRAMES ENTERTAINMENT : ATARI INC TO REQUEST AN EXTENSION OF TIME TO RESPOND TO IESA LETTER OF PROPOSAL
Mercredi 12 mars 2008 / 22h46
Lyon, France March 12, 2008 - As previously announced, on March 5, 2008, Infogrames Entertainment S.A. ("Infogrames") delivered to the board of directors of Atari, Inc. ("Atari") a letter (the "Proposal Letter"), setting forth a non-binding proposal pursuant to which Infogrames and/or its affiliates would potentially acquire the remaining outstanding equity interests of Atari (other than shares of common stock held by Infogrames or its affiliates, which would be canceled) for US$1.68 per share.
A special committee of Atari's board of directors has responded to the Proposal Letter by requesting additional time to respond.
The Proposal Letter states that no binding obligation will arise with respect to the Proposal Letter unless and until a separate definitive agreement is executed and delivered and all conditions contained in such agreement are satisfied. No guarantees can be given that the transaction proposed in the Proposal Letter will be consummated. Infogrames reserves the right in its sole discretion to withdraw the Proposal Letter and/or to modify the proposal contained in the Proposal Letter in any way as a result of negotiations or for any reason at all, or to submit alternative proposals to the board of directors of Atari Inc.
According to a Quarterly Report on Form 10-Q filed by Atari with the United States Securities and Exchange Commission by Atari on February 13, 2008 (the "Atari Form 10-Q"), as of February 11, 2008 there are 13,477,920 shares of Atari's common stock outstanding. Infogrames currently owns 6,926,245 shares of Atari's common stock, representing 51.4% of Atari's outstanding shares, which shares are directly held by Infogrames' wholly-owned U.S. subsidiary, California US Holdings, Inc. Infogrames has proposed to acquire the remaining 6,525,675 shares of Atari's outstanding common stock that it does not currently own.
In the event a transaction were to be completed consistent with the non-binding proposal contained in the Proposal Letter (US$1.68 per share (E1.09 per share), Infogrames would pay an aggregate of approximately US$11 million for the shares of Atari common stock that it does not currently own (not taking into account costs or expenses incurred by Infogrames or other costs, expenses or other obligations which it may agree, or may be deemed by operation of law, to assume), which amount Infogrames presently intends to fund through cash on hand. Due to the nature of the proposal contained in the Proposal Letter, it is anticipated that any resulting transaction, if and when completed, would be conducted under applicable state and federal law in the United States rather than under French corporate and securities regulations.
According to the Atari Form 10-Q, Atari's net revenue for the nine months ended December 31, 2007, was approximately $64.8 million, while Atari's net loss for the nine months ended December 31, 2007 was approximately $20.0 million, or $1.48 loss per share.
All information concerning Atari Inc can be found on the company's website : www.atari.com
***
About Infogrames Entertainment and Atari
Infogrames Entertainment (IESA), the parent company of the Atari Group, is listed on the Paris Euronext stock exchange (ISIN code: FR0010478248) and has two principal subsidiaries: Atari Europe, a privately-held company, and Atari, Inc., a United States corporation listed on NASDAQ (ATAR).
The Atari Group is a producer, publisher and distributor of interactive entertainment software for all market segments and in all existing game formats (Microsoft, Nintendo and Sony) and on CD-ROM for PC. Its games are sold in more than 60 countries.
The Atari Group's extensive catalogue of popular games is based on original franchises (Alone in the Dark, V-Rally, Test Drive, etc.) and international licenses (Dragon Ball Z, Dungeons & Dragons, etc.).
For more information: http://www.infogrames.com
Contact : Cécile SORNAY - Corporate and Financial Communication Director
La Bourse de Paris a tenté un rebond à l'ouverture vendredi, est repassée dans le rouge dix minutes après, pour revenir en territoire positif. Dans le sillage de l'indice...
Les valeurs américaines s'inscrivent toujours en fort recul jeudi avec la publication de mauvais chiffres hebdomadaires de l'emploi et les inquiétudes concernant...
La Bourse de Tokyo a fini en hausse de 2,70% vendredi, se retournant après la mi-journée grâce à des rachats de découverts motivés par l'attente d'un redressement de Wall...
L'euro se replie face au dollar, et le billet vert perd du terrain face au yen après la publication de l'indice américain des prix à la production, qui a...
Le baril de brut léger américain a clôturé jeudi sur le marché Nymex en baisse de 7,46%, sous les 50 dollars le baril, la chute des Bourses ne faisant qu'alimenter la crainte...
