MarketWatch senior columnist Herb Greenberg simplified a recent regulatory filing and suggests that Take-Two management is cashing in on the EA bid at the expense of shareholders.
In sum, Greenberg uncovers that the day before Take-Two rejected EA's first offer in early February, Take-Two management, led by ZelnickMedia execs, amended its agreement with the company by inflating their pay and bonus -- while withholding the information of EA's first offer from shareholders.
Here's Greenberg's take on the situation:
"That's right: Take-Two received a rich and serious offer from a substantial company. It didn't disclose the offer, and hoped to keep it secret until at least after the annual meeting, when investors might have challenged the compensation package and attempts by the company to block the deal. Then, in a public filing, Take-Two in effect threatened EA not to make the offer public by giving ZelnickMedia a chance to enrich itself, at the expense of shareholders, by granting restricted stock that will vest immediately if EA made the deal public."
Read the full article for Greenberg's analysis.