Grand Theft Auto creators Take Two Interactive continue to defy EA's bid

Take Two rebuffs EA once more

Extension not needed, answer is still 'no'

vnunet.com, 18 Jun 2008

Games company Take Two Interactive has again turned down an acquisition offer from Electronic Arts.

Shortly after EA announced that it would be extending its deadline on the $2bn offer, Take Two issued a statement of its own saying that its board continues to be unanimously opposed to the acquisition.

"The latest extension of EA's unsolicited, highly conditional tender offer does not alter the fact that the proposal still significantly undervalues Take Two," said Take Two chairman Strauss Zelnick.

"This is reflected in the overwhelming number of stockholders who still have not tendered their shares.

"Our board of directors remains in unanimous agreement that the proposal is contrary to the best interests of Take Two stockholders, and the board continues to recommend that stockholders not tender their shares to EA."

EA is offering Take Two shareholders $25.74 per share. The company estimates that is has secured around six million shares of Take Two stock, roughly eight per cent of all shares.

Their proposal still significantly undervalues Take Two

Strauss Zelnick Take Two

Take Two contends that the offer undervalues the company both now and in the future, particularly in light of the record-setting release of Grand Theft Auto 4.

"Take Two's vast potential to create and enhance stockholder value has become even more evident in recent weeks," said chief executive Ben Feder.

"We believe that any alternative we consider must fully reflect the value we are creating and capture that value for the benefit of our stockholders."