Hickey: EA may have to go to $30 per share for Take-Two

By Patrick Garratt, Thursday, 17 April 2008 18:30 GMT

Janco’s Mike Hickey reckon’s EA has only managed to get hold of 25 percent of Take-Two with its tender offer, which expires tomorrow.

“We continue to believe EA wants to buy Take-Two but will likely have to raise their tender to $30 per share if they expect to close the deal. We maintain our view EA’s bid will prove insufficient after talking with TTWO shareholders and our approximation that at least 35 percent of the TTWO’s shareholder base consists of arbs. We do not believe EA has accumulated more then 25 percent of the Company’s shares in their current tender, which should provide them minimal leverage in pressuring the Company’s board in favor of their $26 bid,” he said.

Hickey continued, “It’s difficult for us to determine EA’s willingness to increase their bid to complete the acquisition, but the accretive nature of the deal seems obvious and the incremental cost of a higher bid seems minimal compared to the longer term benefits. We believe Zelnick Media’s compensation plan will be approved today and that management continues to aggressively pursue the best interest of shareholders.”

Take-Two’s AGM is scheduled for tonight, 6.30pm Eastern time. It’s sure to be a cracker, although we’re erring on the side of bed at the moment.

Thanks, GameDaily.

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