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By now the news of EA’s unsolicited February bid to acquire Take-Two Interactive Software is common knowledge – as is the resulting rejection of the offer by Take-Two’s higher-ups. Taking the bid public at a price of $26 a share, EA’s offer was once again discarded. Take-Two explained that they were not interested because the offer both undervalued the publisher as well as came at a poor time. After being rejected again, it seems EA has chosen to bypass Take-Two’s company board and is appealing directly to shareholders.
So it seems the Take-Two takeover has turned hostile. The Wall Street Journal reports that “Such offers often evolve into a game of ‘chicken,’ as shareholders try to hold out for a higher offer and the potential acquirer threatens to walk away. Boards of directors, meanwhile, often end up negotiating with the hostile party if shareholder support favors a deal.”
EA’s tender offer terminates on April 11 – a day after Take-Two has its yearly meeting with shareholders. It seems things are getting interesting.
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