Electronic Arts extends tender offer for Take-Two to June 16 after some 6.2 million shares tendered

By Lisa Kerner

Charlotte, N.C., May 19 - Electronic Arts Inc. said it extended its tender offer for Take-Two Interactive Software, Inc. to 11:59 p.m. ET on June 16 from May 16.

As of May 16, some 6.2 million shares of Take-Two had been tendered in Electronic Arts' $25.74-per-share offer, an Electronic Arts news release stated.

The extension will allow the Federal Trade Commission to continue its review, Electronic Arts senior vice president of corporate development Owen Mahoney said in a company news release.

A second request for information from the FTC regarding the proposed merger extended the Hart-Scott-Rodino waiting period until 10 days after Electronic Arts and Take-Two have "substantially complied" with the request, an April 17 8-K filing with the Securities and Exchange Commission said.

It was previously reported that Electronic Arts' offer had been extended from April 18 to May 16 and the offer price was decreased to $25.74 from $26.00 per share.

Electronic Arts added that the new offer price takes into account the 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 on April 17.

Total consideration for Take-Two shares remains unchanged at some $2 billion, it was reported.

On Feb. 15, Take-Two turned down Electronic Arts' unsolicited proposal to acquire the company for $25.00 per share and said no to a revised $26.00-per-share offer.

The board of directors of Take-Two believes Electronic Arts' offers undervalue the company, but Electronic Arts said its $25.74-per-share offer price is "full and fair," according to a prior news release.

Take-Two previously announced the adoption of a stockholders rights agreement in response to the Electronic Arts offer to protect stockholders against unsolicited attempts to acquire control of the company.

The company's board said it will explore alternatives to maximize shareholder value, which could include a business combination with third parties or with Electronic Arts or continuing as an independent company.

Discussions with third parties would take place only after Take-Two's Grand Theft Auto IV video game on April 29, Take-Two noted.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.