EA extends Take-Two offer, cuts price

From here:

SAN FRANCISCO, April 18 (Reuters) - Electronic Arts Inc (ERTS.O: Quote, Profile, Research) on Friday said it extended its tender offer for Take-Two Interactive Software Inc (TTWO.O: Quote, Profile, Research) by nearly one month at a lower price of $25.74 per share, drawing out a standoff between the two video game publishers.

The new price, which still values Take-Two at $2 billion, takes into account additional shares to be issued following stockholder approval of an incentive stock plan at its annual meeting on Thursday.

The lower price makes good on Electronic Arts' warning that its per-share bid would fall by 26 cents if the incentive plan was passed.

"Their price is capped. They will not do a deal that is not accretive to fiscal 2010," said Kaufman Bros analyst Todd Mitchell, adding that EA could raise its bid by a dollar or two at most.

"If it doesn't get done it doesn't get done. They cannot overbid for this. EA has very strong revenue story but a weak earnings story," Mitchell said.

This is pretty much hilarious. And awesome. Take-Two rejected EA's offer of $26 per share at its AGM last night.

Thanks, Psychotext.