EA Says, "C'Mon Baby," To Take-Two
In a drama nearing the quality of a Mexican telenovela (to me, at least), Electronic Arts has issued a special invitation for Take-Two Interactive to further consider their offer.
As this tryst has played out over the course of this past week, we have heard Take-Two say, "No thanks," then we heard market analysts say, "But (s)he is so good for you," and now, Electronic Arts has crawled back with one more interjection of, "Baby, wait a bit. Just give it some time, and really think about it."
Electronic Art's response to the cold sting of Take-Two's hasty rejection was to extend their offer of $26.00 per share by one week (from April 11 to April 18), which falls one day after Take-Two's annual shareholders meeting. Though, like all things, some restrictions may apply.
- EA has added a condition to its offer requiring either (1) that Take-Two's Board of Directors redeem the preferred stock purchase rights issued as a result of Take-Two's adoption on March 24, 2008 of the stockholder rights plan, or (2) that EA be satisfied that such rights have been invalidated or are otherwise inapplicable to its acquisition of Take-Two.
- EA has extended its tender offer for all of the common stock of Take-Two until 11:59 p.m., New York City time on Wednesday, April 18, 2008, unless further extended. The offer was previously set to expire at midnight, New York City time, on April 11, 2008.
"The actions of the Take-Two Board may increase the risk for their stockholders by delaying a potential transaction," said Owen Mahoney, Senior Vice President of Corporate Development at EA. "We continue to believe that our $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."
Will Take-Two continue to play hard to get? Will Electronic Arts wise up and realize that Take-Two is just a tease?
Tune in next week for, "The Corporations are So Restless!"
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Posted to Miscellany on 28 March 2008
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