EA amends takeover offer, extends deadline by one week

With Take Two’s board rejecting EA’s takeover offer, EA has softened its stand, though only a bit. It had previously set April 11, 2008, as the deadline but has deferred it by a week and reset it to April 18, 2008. Despite the extension, it still is keen to close the deal before the April 29, 2008, release of GTA IV. It has also amended its takeover proposal, which was coming after Take Two adopted the Shareholders Rights Agreement.

The most important amendment is regarding the shareholders rights agreement and it reads, “either (1) that Take-Two’s Board of Directors redeem the preferred stock purchase rights issued as a result of Take-Two’s adoption on March 24, 2008 of the stockholder rights plan, or (2) that EA be satisfied that such rights have been invalidated or are otherwise inapplicable to its acquisition of Take-Two.” EA feels that its $26 per share is fair and not undervalued. It also feels that this is the best offer for the Take Two shareholders.

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