EA Extends Offer to Take-Two
The EA-Take-Two saga continues as Electronic Arts (EA) has extended its offer to buy Take-Two from midnight on April 11 to 11:59 p.m., April 18. EA says the extension is in response to action taken by Take-Two on March 26, including putting a “poison pill” in place and pushing its 2008 annual meeting of stockholders back to April 17. Investopedia describes a “poison pill” as a method companies use to discourage hostile takeovers. The goal is to make its stock less attractive to the buyer. The two types of pills include:
1. A “flip-in” allows existing shareholders (except the acquirer) to buy more shares at a discount.
2. The “flip-over” allows stockholders to buy the acquirer’s shares at a discounted price after the merger.
For its part, EA continues to consider its offer to buy Take-Two at $26 a share (64 percent more than the stock’s closing price on February 15) is a fair offer. The proposition was originally made on March 13, but Take-Two has repeatedly refused the offer.
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POSTED IN: 'Wire' Reports, Business Deals, Game Publishers, Mergers-Acquisitions
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