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Electronic Arts begins tender offer for Take-Two Interactive Software
By Angela McDaniels
Tacoma, Wash., March 13 - Electronic Arts Inc. said it began its $26-per-share tender offer for Take-Two Interactive Software, Inc.'s common stock on Thursday.
The tender offer expires at midnight ET on April 11, according to an Electronic Arts news release.
In a separate statement, the Take-Two board said it is reviewing Electronic Arts's offer and will make its position known within 10 business days. Meanwhile, the board urged shareholders to take no action in response to the offer.
The tender offer is valued at some $2 billion and represents a 64% premium over Take-Two's closing stock price on Feb. 15, the last trading day before Electronic Arts sent its revised proposal to Take-Two.
As previously reported, Take-Two turned down Electronic Arts's unsolicited proposal to acquire the company for $25 per share on Feb. 15 and said no to the revised $26-per-share offer, calling the latest bid "inadequate in multiple respects."
Take-Two also accused Electronic Arts of trying to take advantage of the upcoming release of its Grand Theft Auto IV video game.
In response, Electronic Arts said that while it would have preferred to conduct a private negotiation, it decided to make the offer public in a Feb. 24 news release and said a delay in accepting the offer "could prevent Take-Two's shareholders and other constituents from realizing its benefits."
Morgan Stanley & Co. Inc. is the dealer manager for the tender offer, and Georgeson Inc. is information agent.
Electronic Arts, located in Redwood City, Calif., and New York-based Take-Two are interactive entertainment software companies.
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