The Associated Press reports that EA, unsatisfied with the reply they received from Take-Two’s board of directors concerning their bids for control of the company in mid-February, have decided today to undercut the board entirely and are now offering the same 26-dollars-per-share directly to Take-Two’s stockholders.
The tender offer expires on April 11, more than two weeks before the latest “Grand Theft Auto” hits store shelves. New York-based Take-Two has consistently rejected the bid since late February, calling it the wrong price at the wrong time. On Thursday, its board asked shareholders to wait 10 days while it reviews the offer.
EA’s chief executive, John Riccitiello said timing is crucial for the deal.
“We are counting on being able to achieve revenue synergies by the holidays,” he said in an interview. EA wants to use its marketing prowess to sell more of Take-Two’s games in the winter shopping season, when video game companies make the most of their money.
Meanwhile, Take-Two recommends that stockholders hold on to their idiomatic horses:
New York, NY - March 13, 2008 -The Board of Directors of Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today recommended that Take-Two stockholders take no action at this time in response to the announcement by Electronic Arts Inc. (NASDAQ:ERTS) that it has made an unsolicited conditional tender offer to acquire all of Take-Two’s outstanding shares of common stock for $26 per share in cash.
Consistent with its fiduciary duties, and in consultation with its independent financial and legal advisors, Take-Two’s Board will review and consider EA’s offer, and within 10 business days, will advise Take-Two’s stockholders of the Board’s position regarding the offer as well as its reasons for that position.
There’s at least one gentleman who’s not likely to heed that call.
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