EA Makes Multiple Offers to Acquire Take-Two Interactive

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Electronic Arts has made an offer to purchase Take-Two Interactive in an all-cash bid. The offer was sent to Take-Two on February 19.
EA offered $26 per share in cash for Take-Two Interactive (a 64% premium over Take-Two Interactive's closing stock price on February 15, and 63% over the company's 30-day average stock price). That bid is $1 per share higher than EA's original offer for the company.

The wording of EA's announcement suggests that Take-Two has been reluctant to accept EA's offer. EA even said that "further Take-Two delay in accepting EA's proposal could prevent Take-Two's shareholders and other constituents from realizing its benefits." In other words, EA has made a very high buyout offer (relative to existing stock prices), and is making this announcement to put pressure on Take-Two Interactive. In all likelihood, if Take-Two does not accept this offer, it will be the subject of a lawsuit from other shareholders.

UPDATE: EA has posted materials related to the proposal to eatake2.com

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This page contains a single entry by Editor published on February 24, 2008 12:13 PM.

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