Electronic Arts again extends unsolicited tender offer for Take-Two

By Angela McDaniels

Tacoma, Wash., July 21 - Electronic Arts Inc. said it extended its tender offer for Take-Two Interactive Software, Inc. to 11:59 p.m. ET on Aug. 18 from July 18.

About 11.74 million shares of Take-Two's common stock had been tendered in the $25.74-per-share offer as of July 18, according to an Electronic Arts news release.

Extending the tender offer allows the Federal Trade Commission review process to continue, Electronic Arts said, and the proposed acquisition remains subject to conditions that include regulatory approval.

In a separate release, Take-Two noted that only 15% of its stock has been tendered under the unsolicited offer.

Take-Two's board "remains unanimous in continuing to recommend that our stockholders not tender their shares to EA," Take-Two chairman Strauss Zelnick said in the release.

"We are fully engaged in a formal process to evaluate strategic alternatives that have the potential to deliver greater value than EA's inadequate offer. As part of this process, we continue to engage in meaningful discussions with multiple parties, a number of whom have been conducting due diligence."

Take-Two turned down Electronics Arts' original unsolicited offer to acquire the company for $25.00 per share on Feb. 15 and then said no to a revised $26.00-per-share offer.

Electronic Arts began its tender offer in March. The Take-Two board called the offer inadequate and recommended that shareholders not tender under the offer.

Electronic Arts dropped the tender offer price to $25.74 per share from $26.00 in April - reportedly to reflect additional shares to be issued to Zelnick Media following stockholder approval of an amendment to Take-Two's incentive stock plan at its 2008 annual stockholders meeting - and has extended the offer five times.

Take-Two and Electronic Arts are interactive entertainment software companies based in New York and Redwood City, Calif., respectively.

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