Following Take Two's stern rejection of EA's $26 per share offer for the firm
, Wedbush Morgan's Michael Pachter has stated that he believes the publisher's board has made an error of judgement.
We're frankly surprised by Take Two's rejection of EA's offer,” Pachter stated. Although many of the points raised by Take Two's board are entirely true, we are somewhat amused that they are raised as negotiating points.
We think that the board has virtually no chance of finding a better offer. In our view, Take Two's board has made a mistake. We believe that the company was positioned to extract a higher offer from EA by offering a friendly transaction, and its board chose to continue its adversarial posture.
We think that Take Two's position that the company will have greater value after the release of Grand Theft Auto IV is naive at best, and disingenuous at worst. We think that the strategy adopted by Take Two's board was ill-advised.”
To read Pachter's response in full, click here.