Atari Hires Advisor to Evaluate Infogrames\' Proposal

Last week we reported that French publisher Infogrames, Atari's majority shareholder, offered to purchase all of Atari's outstanding common stock.

At the time, the financially beleaguered Atari noted that the offer "is non-binding and there is no assurance that any transaction will occur or as to the terms of any transaction." Following up on that proposal today, Atari said in a very brief press release that the company has hired financial advisors to take a closer look at the deal.

Infogrames had expected Atari to respond by March 11, but the company also noted that it's seeking an extension to that deadline.

"...the Special Committee of Atari, Inc.'s Board of Directors has retained Duff & Phelps, LLC as its financial advisor to assist it in evaluating the proposal by Infogrames Entertainment S.A. (IESA) to acquire all of the outstanding common stock of Atari, Inc. not held by IESA for $1.68 per share, in cash. The Special Committee also informed IESA that it would not be in a position to respond to the offer by the date of March 11, 2008, as requested by IESA in its letter containing the proposal. The Special Committee intends, together with its advisors, to thoroughly evaluate IESA's proposal before providing any response," reads the release.