SAN FRANCISCO -- Video game publisher
has extended its tender offer for rival
EA set a new deadline of June 16 for Take-Two shareholders totender their stock after its previous offer expired Friday.This is the third extension from the company for its tender offer andin line with what many Wall Street analysts
had been expecting.
EA said Monday that the extension will allow the Federal Trade Commission review process to continue.
EA has offered $25.74 a share, but Take-Two -- or its shareholders -- aren't biting.
"EA's offer price remains unchanged at $25.74 per share and our offer is still subject to conditions that include regulatory approval. As stated earlier, we retain the right to terminate the offer if the conditions are not satisfied," said Owen Mahoney, Senior Vice President of EA Corporate Development.
EA said as of Friday about 6.2 million shares of Take-Two, or about 8% of total outstanding shares, had been tendered.
But investors have been betting that EA will raise its offer. Shares of Take-Two closed at $27.10 Friday, trading much higher than EA's bid. Shares of EA closed at $49.60 Friday.
Take-Two's management has twice rejected EA's proposal saying itsignificantly undervalues the maker of the blockbuster
Grand Theft Auto IV
sold more than 6 millioncopies for
Xbox 360 platform and
PlayStation 3 console in just a week of its releaselast month.
EA made its offer for Take-Two public on Feb. 24.
EA's drawn-out battle for Take-Two is in contrast with the quickdeal that its peer
Activision announced in December its plans to combine with Vivendi Games to create a new entity Activision-Blizzard. The acquisition in expected to close in the next few weeks.