Atari to Effect 1-for-10 Reverse Split to Boost Share Price

Authored by Mark Hefflinger on November 7, 2006 - 3:54pm.

New York - Video game publisher Atari announced that it will seek approval from shareholders to effect a one-for-ten reverse stock split, in an attempt to raise the company's sagging $0.50 share price above the Nasdaq's $1 minimum requirement for continued listing.

In addition to the stock split, the company is also asking for shareholders' approval to reduce the company's outstanding shares to one-tenth their current number.

"The final decision for Atari to undergo a reverse stock split was made in connection with an appeal from a Nasdaq staff determination that Atari's common stock should be suspended because it was not in compliance with Nasdaq's minimum bid price requirement," said Atari chairman Bruno Bonnell.

Atari said parent company Infogrames, which controls 51% of shares, has said it will vote in favor of the proposals.

Related Links:
http://biz.yahoo.com/prnews/061103/nyf132.html?.v=3
http://biz.yahoo.com/ap/061103/atari_split.html?.v=1 (AP)
http://www.atari.com