Electronic Arts Extends Offer to Acquire Take-Two Interactive Again

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Take-Two InteractiveElectronic Arts' offer to acquire all the outstanding shares of Take-Two Interactive was set to expire today. However, Take-Two Interactive has refused to cooperate with the Federal Trade Commission on its examination of the transaction, effectively stonewalling and delaying the possible acquisition. As a result, EA has extended its offer until July 18. EA's offer is still contingent on several conditions, including regulatory approval, and the FTC's sign-off is necessary for the transaction to move forward.
According to Owen Mahoney, Senior Vice President of EA corporate development, "Our offer price remains unchanged at $25.74 per share, which is a substantial premium to where Take-Two's stock was trading prior to our offer. We congratulate Rockstar on the successful launch of GTA IV but believe our offer reflects a full and fair price based on the long-term value of Take-Two's entire operation."

Take-Two Interactive responded to the extension. Strauss Zelnick, Chairman of Take-Two Interactive's board said, "The latest extension of EA's unsolicited, highly conditional tender offer does not alter the fact that their proposal still significantly undervalues Take-Two..." Unfortunately for Take-Two, they are loosing credibility with the investment community, many of whom believe Take-Two is engaging in unreasonable delaying tactics.

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This page contains a single entry by Editor published on June 17, 2008 5:46 AM.

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