Take-Two Proxy Battle on Tap

The group has said clearly in its Securities and Exchange Commission filing on March 7 that it does not intend to solicit any stockholder to vote or withhold a vote in the current battle. The group also has said in the filing that it will not accept any proxies from shareholders and does not intend to make any public statements or respond to shareholder inquiries about this.

"If they already have the votes they need, they probably don't care about giving shareholders an opportunity to vote for their candidates," says Young.

Take-Two's annual shareholder meeting has been scheduled for March 23.

The company also faces dissident shareholder and outspoken critic Jack Thompson, who initiated the protest against the racy content hidden in its 2004 video game Grand Theft Auto: San Andreas. Thompson had sent a letter to Take-Two in January asking for the company to speak at the shareholder meeting ostensibly against the current management.

"With Take-Two, you have a management team less than forthright with investors and the board," says Thompson, who has now written a letter to ZelnickMedia, the financial and management consultant to the shareholder coalition.

Meanwhile, other institutional shareholders are amassing positions in the company. The Italian bank Unicredito Italiano said in a filing that it has raised its stake in the company to 10.3%.

Shares of Take-Two closed the regular session Wednesday up 15 cents, or 0.73%, to $20.60. The stock has been up nearly 16.5% since the news of the shareholder filing.