Electronic Arts extends Take-Two deal
Tender offer extended to April 18 after Take-Two moves back its annual meeting.
REDWOOD CITY, Calif. (AP) -- Video game publisher Electronic Arts Inc. said Friday it is extending its tender offer for Take-Two Interactive Software Inc. to April 18 after the rival game maker pushed back the date of its annual meeting.
Take-Two, which delayed its annual meeting until April 17, also adopted a "poison pill" shareholder rights plan to make the takeover more expensive for EA. At the time, Take-Two urged shareholders to reject the $2 billion buyout bid, saying the offer is not high enough.
EA wants 'poison pill' off the table. On Friday, EA also added a condition to its offer requiring that Take-Two's board take action to invalidate the poison pill.
EA began its $26 per share all-cash tender offer March 13. The deal represents a 64% premium above Take-Two's closing stock price on Feb. 15, the last trading day before EA (ERTS) sent its revised proposal to the company.
As of Thursday, about 5,000 Take-Two (TTWO) shares had been tendered. As of Dec. 14, there were 74.3 million Take-Two shares outstanding. The tender offer was previously scheduled to expire on April 11.
"The actions of the Take-Two Board may increase the risk for their stockholders by delaying a potential transaction," said EA Senior Vice President of Corporate Development Owen Mahoney. "We continue to believe that our $26 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." 
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