Take-Two Still Open to Discussion Post GTA IV

T2 will begin formal discussion with interested parties post GTA IV launch

Posted by Staff
A strangely fingered accountant playing accountancy games today.
A strangely fingered accountant playing accountancy games today.
Take-Two Interactive has responded to Electronic Arts' rescheduling and re-pricing of its offer (reported here).

Included in the official information is the following re-affirmation that T2 is going to talk to other parties after April 29th, "The Board is committed to maximizing stockholder value and continues to explore all strategic alternatives, including a business combination with third parties, remaining independent, or other strategic or financial alternatives.

We have received expressions of interest from a number of interested parties and look forward to beginning formal discussions following the launch of Grand Theft Auto IV".

Bluff? Or simply maximising shareholder value? The former is highly improbable.

Okay, this is all turning into a long, drawn out battle of egos as far as we can see. Bear in mind that even if all of Take-Two's shareholders suddenly said, "Enough! You've worn us all down! Have the freaking shares!" (which they won't), any merger would still be months off.

So, Take-Two has responded as follows, "This is the same highly conditional proposal that EA offered Take-Two stockholders on March 13, 2008, which our Board of Directors thoroughly reviewed and unanimously determined to be inadequate and contrary to the best interests of Take-Two's stockholders. Take-Two's Board of Directors has maintained from the beginning, and continues to believe, that EA's proposal undervalues our Company. It undervalued the company at $26 per share, and it certainly undervalues Take-Two at $25.74."

The fact is that as we go to press only 8.3% of T2's shares have been 'tendered into EA's offer' - that's 6,432,787 of Take-Two's outstanding shares that have been made available to EA.

"The minuscule number of shares tendered, as well as the strong vote in favor of the proposals presented at our annual meeting, offer indisputable evidence that our stockholders regard our efforts to enhance Take-Two's stockholder value as superior to the EA offer," said Strauss Zelnick, chairman of the board of Take-Two.

Read more official info on the ongoing saga... here.


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