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Countdown to EA/Take Two decision begins

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Countdown to EA/Take Two decision begins

Industry will discover the fate of Rockstar’s parent later today

Electronic Arts is just hours away from finding out if it has won over Take Two’s shareholders – and successfully acquired the company.

It’s a fascinating time for those that love their numbers; with the big question – will EA CEO John Riccitiello push his bid even higher as time ticks away?

EA’s $2 billion tender offer is set to expire today – and Riccitiello et al need to convince at least 51 per cent of Take Two investors to sell up in order to claim the company.

The current $25.74 per share bid (around $2.1 billion) has already been amended once, but Take Two executive chairman Strauss Zelnick is still encouraging investors to hold out – and so far, he looks to have been successful.

However, one of the longest sagas in video games business history could also be extended by even more time today – as predicted by Lazard Capital Market analyst Colin Sebastian – giving EA a precious extra few days to convince Take Two stockholders.

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Wall Street confidence in that eventuality appears to be dropping – EA’s shares fell or 2.4 per cent to $51.52 in the US yesterday, whilst Take-Two gained 1.3 percent, to $27.33.

As Wedbush Morgan analyst Michael Pachter told MCV this week:

“It really depends upon whether Take-Two is willing to deal with EA on a reasonable basis, and ask for a price that is within range of EA's price ceiling.”

Gta Plz No

posted by Same May 17, 2008 at 8:54 pm
1
Same

Plz Gta NOOO

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