Take-Two bid likely to succeed, says analyst
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Stern Agee analyst Arvind Bhatia has said he now thinks it's likely that EA will complete a takeover of Take-Two, following the firm's tender offer of $26 per share this morning.
"We feel the tender offer is likely to succeed as TTWO shareholders consider and weigh the risk of EA walking away from the proposal if majority ownership is not met," he said in a research note today, adding, "We feel that EA will raise the $26 bid (by $1-$2 per share) if the tender falls slightly short of the majority ownership."
Take-Two management has just told its shareholders to wait before reacting to the offer, promising the review the deal over the next ten working days.