Electronic Arts has amended and extended its tender offer for outstanding shares of Take-Two stock.
EA has extended its tender offer until April 18, one week past the original expiration date of April 11. The move comes as a result of Take-Two’s decision to change its annual shareholder meeting to April 17, according to a GamesIndustry report. In response to Take-Two’s adoption of a stockholder rights plan that would serve as a “poison pill” in the event of an EA takeover, the company has also modified its offer to require Take-Two’s Board of Directors to either redeem the preferred stock purchase rights issued as a result of that shareholder rights plan, or satisfy EA that these rights do not apply to its potential acquisition.
EA also issued a warning to Take-Two stockholders that the Board’s ongoing resistance may put the deal, and the value of their shares, at risk. “The actions of the Take-Two Board may increase the risk for their stockholders by delaying a potential transaction,” said EA’s Senior Vice President of Corporate Development Owen Mahoney. “We continue to believe that our $26.00 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.”