Electronic Arts has stepped up its campaign to acquire Take-Two Interactive by announcing a tender offer for all outstanding shares of common stock in the company.
The company is maintaining its offer of $26 per share, according GamesIndustry, which represents a 64 percent premium of the company’s stock price of February 15, the day before EA made its offer to buy out the company. The tender offer will remain open until April 11.
“This is a great opportunity for Take-Two shareholders. We believe Take-Two investors will see our tender offer as the best way to maximize the value of their investment in Take-Two. This tender offer provides a clear process to complete the proposed transaction,” said Electronic Arts CEO John Riccitiello. “For EA shareholders, the combination would add additional intellectual properties to our already strong portfolio and welcome Take-Two’s talented creative teams to the great development organization we’ve built at EA.”
A tender offer is a public, open offer made directly to a company’s shareholders, who are given the opportunity to sell their stock at a fixed price during a specific time period. Tender offers are a commonly-used tactic during hostile corporate takeovers, allowing firms to acquire stock in a company even if the takeover target’s board of directors does not approve of the acquisition.
Published: Mar 13, 2008 02:47 pm