TakeTwo turns down Electrocin Arts proposal once again

7th May 2008

At a regular meeting of the board of directors, TakeTwo Interactive Software again carefully examined the proposal by Electronic Arts and unanimously decided to reject it. Similar recommendations have been given to shareholders of Take Two several times before, but the bargain proposed by EA is contrary to the shareholdersâ€™ interests.
In addition, by decision of shareholders 1.5 million shares of TakeTwo were transferred to the investment firm ZelnickMedia, already owning a major stock holding of Take Two. EA, in its turn, reduced the proposed price per share of Take Two from 26 to 25.74 U.S. dollar.
Already on February, 19, EA proposed more than two billion dollars for TakeTwo, but the bosses of the latter thought this amount is not sufficient. TakeTwo authorities say that EA can not really estimate the real value of the companies stocks .
Then EA decided to try to make the bargain, bypassing the Board of Directors of TakeTwo and made a direct proposal to shareholders of the companies. Heads of TakeTwo, in their turn, asked the company's shareholders not to sell shares to Electronic Arts. However, according to EA representatives, EA already owns 5000 shares of TakeTwo.
Meanwhile, the board of directors continues to seek alternatives to increase shareholdersâ€™ profits. This is not surprising, because already at least one of the shareholders of Take wo filed an action, arguing that the company's management actions prevent bringing profits to the shareholders. TakeTwo does not exclude the possibility of negotiations with EA, but only after Grand Theft Auto IV goes on sale.