HardwareGeeks.com - Take Two Rejects EA’s Hostile Bid

Posted by: Michael on Wed, Mar 26th, 2008

Take Two today rejected EA’s hostile takeover bid and it’s board of directors has said the $26 dollar offer per share is inadequate.

The board also filed a commendation with the SEC that request Share Holders to ignore EA’s offer. Take Two also said it will explore other alliances with third party companies such as EA to add value to their stock.

“With one of the strongest portfolios of intellectual property in our business, a superb creative and business team, and a revitalization plan that is beginning to deliver results, Take-Two is uniquely positioned to create stockholder value in an industry that is enjoying the highest growth rates of any entertainment medium. We are effectively working toward a process to review all available options to maximize this value, either as an independent company or in combination with a third party, and are open to beginning informal discussions starting now. Our stockholders’ interests would hardly be served by accepting an offer from EA at the wrong price and the wrong time. As a result, the Board recommends that stockholders not tender any of their shares to EA.”

Does this mean the end of EA trying to take over Take Two? I doubt it, EA will probably up their offer another 2 dollars per share, and who knows maybe some stockholders will sue Take Two to make them reconsider their decision.

Corporate world is just as crazy as politics.