EA's Proposal to Take-Two Expires Tomorrow Night
EA’s bid to buy out shares in Take-Two will get the head up or the thumbs down from stockholders today during their meeting. EA’s current offer of $26 per share is set to expire tomorrow night at 11:59 PM so we expect to hear either a yea or a nay sometime between now and tomorrow night.
Take-Two announced yesterday that they have not submitted any proposals for the annual meeting stockholders meeting, but those present will be voting on whether to award Take-Two’s management company, ZelnickMedia, 1.5 million shares. No word on how many investors are wanting to sell their shares to EA has been made available , but the Wall Street Journal has stated that a number of shareholders in Take-Two have reduced their holdings due to the rejection of EA’s offer.
If Take-Two shareholders go through with plans to award shares to ZelnickMedia, EA has stated that it will “dilute existing holdings by around $0.26 per share” and even with the deadline looming, EA has the option of extending the offer or making another one. Analysts have predicted that a deal will will eventually happen, and that the price may go up as mushc as $30 per share.
Zelnick is currently refusing any offers or to negotiate until GTA Iv is released on April 29th and they are currently predicting that the game will sell $400 million during its first week on the market -which would give Take-Two a substantial position. Share prices in Take-Two stock have risen $0.50 per share since EA made the offer.
Check back because a decision will be made one way or the other come tomorrow.