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Take Two Adopts Poison Pill To Block EA Bid

"Grand Theft Auto" publisher Take-Two Interactive told shareholders on Wednesday to reject Electronic Arts' $2 billion hostile bid, saying the offer was too low. The company's board said it was exploring other options, including a sale or partnership with another game publisher. It also wouldn't rule out some other combination with EA, the game industry's largest publisher. However, Take-Two said that no further decision would be made until after the April 29 release of "Grand Theft Auto IV," which many expect to be the game sector's biggest seller of the year.

The publisher also adopted a new 180-day shareholders' rights plan, often referred to as a poison pill, to guard against EA's hostile bid and to delay its own annual meeting until six days after the EA offer expires--although EA can extend that deadline.

EA responded by warning shareholders that "Take-Two's board is exposing them to further delays which may reduce the value and the certainty of a potential transaction." It added that the "full and fair" offer of $26 per share accurately reflected the value of Take-Two's game franchises, personnel and operations.

Read the whole story at New York Times »

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