EA Take-Two Takeover Goes Hostile
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Electronic Arts has officially announced that it has commenced a 'hostile' tender offer for all outstanding shares of Take-Two stock at $26 the same price as its original formal offer last month.Take-Two itself has urged shareholders to withhold action.
That initial unsolicited offer was rejected by Take-Two directors, claiming that it undervalued the company despite representing a 50 percent premium over then current share prices. Take-Two subsequently refused to negotiate further, until after the release of subsidiary Rockstar Games' Grand Theft Auto IV in April.
Analysts are split on whether this 'hostile' takeover, so-called because it would bypass Take-Two's company directors and go directly to shareholders, will be successful and whether the per share offer price will have to be increased.
