The Board continues to recommend that stockholders not tender their shares to EA.
Take-Two Interactive Software has responded to Electronic Arts' announcement that it is extending its unsolicited conditional tender offer to acquire all of Take-Two's outstanding shares.
As of June 16, 2008, only 6,139,824 of Take-Two's outstanding shares, or approximately 7.9% of the total, have been tendered into EA's offer.
"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.
Zelnick continued: "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, also offered some reasons why Take-Two believes EA's offer undervalues the company.
"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," said Feder. "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."
Exnor wrote at 18:37 on 17 June 2008
EA normally gets what it wants. Will be interesting to see how this turns out.
Wido wrote at 19:15 on 17 June 2008
Take Two would probably will sell up to EA, as they waited for the Sales of GTA IV first. Which was a clever move, EA buy them out = More money more backing for better game engines and etc and etc. But if I was Take Two I would want to stay independent.