Take-Two still chastising EA
6/17/2008 10:07:00 AM
In the latest update, Take-Two is still chastising EA for lowballing the price of the company in EA's attempt at an unsolicited take-over. For the fourth time, EA has extended the deadline for its tender to acquire outstanding shares of Take-Two stock. However, according to EA only 6.1 million shares have been tendered (7.9% of total outstanding), so this appears to be going nowhere fast under the current terms. In addition, Strauss Zelnick suggested that Take-Two could combine with another company or remain independent and have better value to the shareholders than accepting an EA solicitation. Bottom line is that EA needs to raise the price significantly before the Take-Two board will even think about endorsing the takeover attempt.
TAKE-TWO INTERACTIVE SOFTWARE, INC. RESPONDS TO ELECTRONIC ARTS' FOURTH EXTENSION OF TENDER OFFER
New York, NY— June 17, 2008 — Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today responded to Electronic Arts Inc.'s (NASDAQ:ERTS) announcement that it is extending for a fourth time its unsolicited conditional tender offer to acquire all of Take-Two's outstanding shares.
As reported by EA, only 6,139,824 of Take-Two's outstanding shares, or approximately 7.9% of the total, tendered into EA's offer as of 5:00 p.m. Eastern time on June 16, 2008.
"The latest extension of EA's unsolicited, highly conditional tender offer does not alter the fact that their proposal still significantly undervalues Take-Two, a fact that is reflected in the overwhelming number of stockholders who still have not tendered their shares," said Strauss Zelnick, Chairman of the Board of Take-Two. "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. The Board remains focused on the strategic process that began formally on April 30 to consider all alternatives to maximize value. We believe that these alternatives, which may include a business combination or remaining independent, will deliver greater value to stockholders than the current EA offer."
Ben Feder, Chief Executive Officer, commented, "Take-Two's vast potential to create and enhance stockholder value has become even more evident in recent weeks, with the runaway success of Grand Theft Auto IV, a product pipeline that is one of the strongest and most creative in our history, and continued operational and financial progress. 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."
For more information, please visit www.taketwovalue.com.