Electronic Arts (NSDQ: ERTS) will go hostile following the rejection of its bid by game publisher Take-Two: it plans a tender offer to acquire all of Take-Two's outstanding shares for $26 each, the price it offered the company last month, reports WSJ, citing sources.
TT, the publisher of the blockbuster Grand Theft Auto game, said before that the offer as too low and ill-timed. It also said it has been approached by other potential acquirers since, but didn't name anyone.
The EA tender offer is set to expire April 11 at midnight, unless extended.
Update: The official announcement is now out: "'This is a great opportunity for Take-Two shareholders. We believe Take-Two investors will see our tender offer as the best way to maximize the value of their investment in Take-Two. This tender offer provides a clear process to complete the proposed transaction.
"For EA shareholders, the combination would add additional intellectual properties to our already strong portfolio and welcome Take-Two's talented creative teams to the great development organization we've built at EA.'
The tender offer is scheduled to expire at 12:00 midnight, New York City time, on Friday, April 11, 2008, unless the tender offer is extended."
By Rafat Ali