EA extends deadline on Take-Two

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For the third time, Electronic Arts has extended its offer to acquire Take-Two Interactive Software for $2 billion.

With the old offer having expired Friday, EA said it has extended the deadline to June 16, acknowledging that it hasn't had much success in lining up shares.

As of Friday, EA said that only 6.2 million shares had tendered into its offer, representing just 8% of the outstanding Take-Two shares, fewer than the amount tendered the first time EA extended its offer to buy the company.

EA is offering $25.74 per share, though Take-Two shares closed Monday at $26.91 and have traded higher than $26 all month, indicating Wall Street's presumption that EA eventually will raise its bid.

Take-Two is run by chairman Strauss Zelnick and CEO Ben Feder, both of whom have been critical of what they say is a substandard offer from EA, though there are no other known bidders for the company.

"The small number of shares tendered into EA's offer to date demonstrates that our stockholders agree with what our board has maintained from the beginning: EA's proposal undervalues our company," Feder said. (partialdiff)
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