Electronic Arts extended its USD2bn offer to Take- Two Interactive by a week, just two days after Take-Two’s board rejected its takeover offer. However, the new deadline of Apr 18 could still be unacceptable to Take-Two’s board, which said it would only enter full negotiations after the release of its latest ‘Grand Theft Auto’ game, on Apr 29.
While Take-Two’s board has urged its shareholders not to accept EA’s bid, Wall Street analysts are advising them to the contrary, warning that EA may walk out at this point. Roughly 5,000 Take-Two shares have been tendered to EA.
EA also said it would reduce its USD26-per-share offer to USD25.74 from USD26, if shareholders accept the ‘poison pill’ which Take-Two’s board wants to introduce. The scheme kicks in when any shareholder acquires 20% of the company, or when anyone owning more than 20% acquires additional shares of more than 2%.