Following news that Tecmo had spurned Square Enix’s offer to buy the firm, and had instead started serious negotiations regarding a Koei merger, Square formally withdraw its bid last night.
It also emerged that Square has asked questions of Tecmo as regards to the move, but had received no response. The Square statement reads:
The Company yesterday received a written notice of the rejection of the Proposal from the board of directors of TECMO. Followed by the notice, the Company immediately requested TECMO for explanation of some issues to receive no response to it, even reasons of the rejection.
Under such circumstances, the Company is unable to make appropriate modifications to major terms of the Proposal including the TOB price, and determines that it is extremely difficult to continue the discussions with TECMO based on the Proposal. The Company, therefore, has decided to withdraw from the Proposal.