Mark Androvich
15:07 (BST)
28/03/2008
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EA amends, extends Take-Two offer
Still believes transaction is compelling financially, strategically and operationally
Electronic Arts has announced that it is amending its tender offer for all of the currently outstanding shares of common stock of Take-Two and extending its offer from April 11 until April 18.
According to the company, the amendments are in response to Take-Two's decision to change the date of its annual stockholder meeting and to adopt a stockholder rights plan designed as a "poison pill" to thwart EA's takeover attempt.
EA has added a condition to its offer requiring either that Take-Two's Board of Directors redeem the preferred stock purchase rights issued as a result of Take-Two's adoption of a stockholder rights plan, or that EA be satisfied that such rights have been invalidated or are otherwise inapplicable to its acquisition.
EA has also extended its tender offer for all of the common stock of Take-Two until noon on April 18 unless further extended. The offer was previously set to expire at midnight on April 11; Take-Two rescheduled its stockholder meeting for April 17.
"The actions of the Take-Two Board may increase the risk for their stockholders by delaying a potential transaction," said Owen Mahoney, EA's senior VP of corporate development.
"We continue to believe that our USD 26.00 per share offer price is full and fair, and that a transaction between Take-Two and EA is the most compelling combination financially, strategically and operationally for all parties."
EA is reporting that, as of March 27, approximately 5,000 shares of Take-Two had been tendered in and not withdrawn from the tender offer.
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