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Article

Title: Take-Two Says Reject EA Buyout Bid

Author: Kopytoff, Verne Article Type: Company
Source: San Francisco Chronicle, pC1(2) Publication Date: Mar 27, 2008
URL of Publication: http://www.sfgate.com

Take-Two Interactive Software Inc. has rejected a $2 billion takeover bid from rival Electronic Arts Inc. Take-Two is the publisher of the popular Grand Theft Auto series of video games, the fourth version of which will be released April 29. Take-Two left open the possibility that it might accept a better offer, though talks are unlikely before the release of the latest Grand Theft Auto. Game sales could affect the valuation of the company. EA made an initial offer of $26 a share in February. When Take-Two rejected the offer, EA attempted to take the offer directly to the shareholders. Take-Two has recommended that shareholders reject the offer, and claimed unspecified third parties were also interested in the company. Many financial advisers agree with Take-Two's claim that EA has significantly undervalued the company. Take-Two has also implemented a 'poison pill' that would make a takeover prohibitively expensive by flooding the market with additional shares. In addition, Take-Two postponed its annual shareholder meeting by a week. Some analysts believe Take-Two's strategy is 'ill-advised.'

Companies:
Electronic Arts Inc Take-Two Interactive Software Inc

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