Take-Two Will Consider Sale

Beleaguered video game publisher Take-Two Interactive(TTWO Quote) gave investors a peek into its strategy for fighting off a threat from shareholders attempting a management change at the company.

New York-based Take-Two said Monday it will postpone its annual shareholder meeting scheduled for March 23 until March 29 and will evaluate alternative courses of action -- including a possible sale of the company.

Investors cheered the news, sending shares of Take-Two up by more than 5.6%, or $1.18, to $22.03. The stock has soared more than 26% since the news of the actions by the shareholder group.

The group, comprising Oppenheimer Funds, S.A.C. Capital Management, Tudor Investment, D.E. Shaw Valence Portfolios and ZelnickMedia, collectively own a little more than 46% of the company and are agitating to replace current CEO Paul Eibeler and the complete board of directors at Take-Two.

"An additional objective of the board is that shareholders, including the shareholder group, not take any action that would preclude an evaluation of any alternative that the company might develop and that could potentially be presented to shareholders," said Take-Two in a statement.

The company added that it is not assuring investors that it offer any specific alternative proposal.

Take-Two will reveal the time and location for the annual meeting later Monday. It also has set a record date of the close of business on March 29 for the purpose of determining the shareholders entitled to act by written consent.