Phil Elliott
08:42 (BST)
10/03/2008
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Take-Two arranges severance plan
Employees who lose their jobs following a take-over will get salary, bonuses
Take-Two Interactive has set up a severance plan to cover its employees in the event of a take-over, according to a filing with the US Securities and Exchange Commission.
The plan will give non-executive employees up to six months' salary, while executives will receive up to 18 months' salary and bonuses, in the event of a person losing their job without cause within a year of any take-over being completed.
Executive chairman Strauss Zelnick and members of his top team would not benefit from this arrangement, as there is already a separate agreement in place for the company's management.
Following two rejected offers from Electronic Arts, the company has moved to reassure key staff and prevent internal disruption, reports Reuters.
"The bid probably created fairly large internal disruption and without a severance plan, employees are worried about losing their jobs," said Janco Partners analyst Mike Hickey. "They want to keep people focused and give them some sort of support."
The latest EA offer of USD 26 per share was rejected at the end of last month, with Zelnick refusing to negotiate further until the day after Grand Theft Auto IV is released at the end of April.
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