EA extends Take-Two deadline ... again

Take-Two shares are trading at around $24.88

Video game giant EA has once again extended the 'deadline' for its proposed acquisition of Take-Two.

The new date is 18 August, which EA says will allow the Federal Trade Commission review process to continue.

Since the original offer in February, EA has moved its ultimatum six times for a variety of reasons, including shareholder meetings and due process by the FTC.

Despite EA's continued advances, Take-Two has consistently claimed that the $25.74 per share offer undervalues the company. Once again, Take-Two's board is urging stockholders to reject the latest offer.

"We are fully engaged in a formal process to evaluate strategic alternatives that have the potential to deliver greater value than EA's inadequate offer," said Strauss Zelnick, chairman of Take-Two.

Despite rises in the share price following the launch of Grand Theft Auto 4, Take-Two shares are trading at around $24.88, slightly below the EA offer.

As of the end of trading on 18 July, EA said it has secured nearly 12 million shares of Take Two stock, roughly 15 per cent of all shares, up significantly from the eight per cent it held in June.