As expected, officials from Electronic Arts have announced that the company is extending its tender offer for all currently outstanding shares of common stock of Take-Two Interactive, with a new deadline set for 11.59pm EDT on May 16th.
The original deadline for the offer was midnight EDT on April 11th, but Electronic Arts extended this to April 18th
, following Take-Two’s alteration of the date of the company’s annual meeting of stockholders (which took place yesterday
) and the establishment of a Stockholders Rights Agreement.
Electronic Arts also amended its offer downwards, from $26 to $25.74 per share. The move takes into consideration the additional shares to be issued to Take-Two chairman Strauss Zelnick’s Zelnick Media, as agreed at the annual meeting. Electronic Arts’ aggregate consideration for Take-Two shares remains unchanged.
The small drop in the share price offer runs in direct contradiction to advice given yesterday by Janco Partners analyst Mike Hickey, who suggested that a $30 share price offer may be needed
in order to ensure shareholder support.