Electronic Arts' takeover bid for Take-Two declined
26 March 2008
Electronic Arts Inc.'s ("EA's") recent takeover bid for Take-Two Interactive Software, Inc. has been declined by the Take-Two Board of Directors.
Take-Two announced that its financial and legal advisors unanimously determined that EA's US$26.0 per share cash offer was "inadequate" and "contrary to the best interests of Take-Two's stockholders".
Accordingly, the Board recommended that stockholders not tender any of their shares to EA.
The basis for the Board's unanimous decision is set forth in Take-Two's Schedule 14D-9 filed today with the Securities and Exchange Commission.
The Board stated that it will explore alternatives to maximize value for stockholders, which may include a business combination with third parties or with EA, remaining independent, or other strategic or financial alternatives that could deliver higher stockholder value than the current EA offer.
"Take-Two's Board of Directors and senior management team were put in place less than one year ago with one mandate: maximize stockholder value", said Strauss Zelnick, Chairman of Take-Two's Board.
"We have maintained a single-minded focus on that goal ever since and it remains the guiding principle in every decision we make with regard to Take-Two."
"Our Board, after careful review, has unanimously determined that Electronic Arts' offer continues to provide insufficient value and remains opportunistically timed to capture the value of the upcoming Grand Theft Auto IV launch at the expense of our stockholders."
Take-Two Interactive Software, Inc. is a global developer, marketer, distributor and publisher of interactive entertainment software games.
Electronic Arts develops, publishes, and distributes interactive software worldwide for video game systems, personal computers, cellular handsets and the Internet.
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