Take-Two rejects fourth EA offer; no rulings from FCC, Canadian Supreme Court; Bond fights for Bud

By Aaron Hochman-Zimmerman

New York, June 18 - Electronic Arts Inc. went back to the well one more time to offer Take-Two Interactive Software Inc. another chance to accept its bid for the company, only to find another rejection in the bucket.

Shares were also lower for radio communicators XM Satellite Radio Holdings Inc. and Sirius Satellite Radio Inc., which were waiting to hear from the Federal Communications Commission, as well as telecom BCE Inc., which is waiting on the Canadian Supreme Court.

InBev NV chairman Carlos Brito was in Washington, D.C., again to make his case for the proposed takeover of Anheuser-Busch Cos. Inc., but much of Missouri expressed its displeasure through its senator Christopher "Kit" Bond.

Also, the curious were left unsatisfied over questions about where Yahoo! Inc. plans to go either under Carl Icahn's board, the original board or a compromise board.

Some say Carl Icahn is satisfied with the Google Inc. deal, but he does not have a history of allowing circumstance to dictate his positions.

Meanwhile, the Dow Jones Industrial Average ended off by 131.24, or 1.08%, at 12,029.06, while the Nasdaq Composite Index gave back 28.02, or 1.14%, to finish at 2,429.71.

The S&P 500 sank by 13.12, or 0.97%, to close at 1,337.81.

Incommunicado

Whether from the FCC or the Canadian Supreme Court, both the satellite radio broadcasters and Canada's BCE were waiting to hear their fate from the mouths of the appropriate government authority.

Unfortunately for the companies and their investors, the waiting will continue as neither gave any indication as to when it will rule.

Much speculation was churned up in the meantime, among the suggestions being that FCC commissioner Deborah Tate may be the dissenting voice that blocks the merger.

And north of the border, the newspaper Globe and Mail reported that the court's decision will be rooted in the interpretation of the phrase "reasonable expectations."

Meanwhile, investors in all three companies were more likely to say "sell" in Wednesday's bearish session.

Shares of BCE (NYSE: BCE) fell $0.14, or 0.41%, to $34.26.

Shares of XMSR Satellite Radio (Nasdaq: XMSR) dropped $0.35, or 3.26%, to $10.38.

Shares of Sirius Satellite Radio (Nasdaq: SIRI) slipped $0.07, or 2.80%, to $2.43.

EA tender offer: take four

Electronic Arts, a videogame producer which is clearly familiar with the reset button, extended its $25.74 per share unsolicited tender offer to Take-Two for a fourth time.

This extension will give Take-Two the opportunity to change its mind until July 18 this time, but it seemed again unnecessary.

"The latest extension of EA's unsolicited, highly conditional tender offer does not alter the fact that their proposal still significantly undervalues Take-Two, a fact that is reflected in the overwhelming number of stockholders who still have not tendered their shares," said Strauss Zelnick, chairman of the board of Take-Two, in a statement.

Shares of Take-Two (Nasdaq: TTWO) were better by $0.12, or 0.46%, at $26.41 and were already trading better than the $25.74 per share offer price, leaving analysts to assume that shareholders believe a better offer is in the works.

Still, if Take-Two refuses to go quietly, some have suggested it will have to fend off a hostile bid from Electronic Arts.

The target said it is confident it can stand on its own.

"Take-Two's vast potential to create and enhance stockholder value has become even more evident in recent weeks, with the runaway success of Grand Theft Auto IV, a product pipeline that is one of the strongest and most creative in our history, and continued operational and financial progress. We believe that any alternative we consider must fully reflect the value we are creating and capture that value for the benefit of our stockholders," said Ben Feder, Take-Two's chief executive officer.

Shares of EA (Nasdaq: ERTS) added $0.20, or 0.43%, to $46.96.

Icahn treads lightly lately

Shareholders at Yahoo! are still tap-dancing around the idea that they can have their proxy and eat it too.

The Icahn-Jackson camp is attempting to carve the fat out of the Yahoo! board, as in those members most vehemently opposed to the deal with Microsoft Corp., a market source said.

The move, however, must be surgical, the source said, as a full revamp of the board would trip the change-of-control clause in the reviled (by many) severance package.

Still, there is the deal with Google, which Google seems happy with and according to some reports Carl Icahn may be satisfied with as well, a market source said.

Shares of Yahoo! (Nasdaq: YHOO) slipped $0.34, or 1.46%, to $22.91.

Shares of Microsoft (Nasdaq: MSFT) gave up $0.34, or 1.18%, to 28.46.

Shares of Google (Nasdaq: GOOG) lost $7.08, or 1.24%, to $562.38.

Bond bucks Brito's Bud bid

Sen. Kit Bond, R-Mo., was likely waiting a long few days to use the line: "My Missouri constituents say, this Bud's not for you," when he met with InBev's chairman Carlos Brito on Wednesday.

Bond told Brito a takeover would be harmful to the St. Louis and the larger economy, even as Brito has made assurances to the Anheuser-Busch community.

In light of the merger between the former Miller and Molson-Coors, Bond said he will make sure the deal is looked at through the lens of the Hart-Scott-Rodino Act to ensure fair market competition.

Shares of Anheuser-Busch (NYSE: BUD) tacked on $0.70, or 1.14%, to close at $61.90.

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