Zelnick laughs in EA's face over new offer

Strauss "Packet" Zelnick isn't impressed with EA's new tender offer for Take-Two of $25.74 per share. He's not impressed at all.

The reduction in price from $26 per share is based on the fact shareholders - some of them, anyway - agreed to tender a further 1.5 million shares to ZelnickMedia at Take-Two's AGM last night.

"The minuscule number of shares tendered, as well as the strong vote in favour of the proposals presented at our annual meeting, offer indisputable evidence that our stockholders regard our efforts to enhance Take-Two's stockholder value as superior to the EA offer," said the Take-Two boss in a statement.

"This is the same highly conditional proposal that EA offered Take-Two stockholders on March 13, 2008, which our Board of Directors thoroughly reviewed and unanimously determined to be inadequate and contrary to the best interests of Take-Two's stockholders.

"Take-Two's Board of Directors has maintained from the beginning, and continues to believe, that EA's proposal undervalues our Company. It undervalued the company at USD 26 per share, and it certainly undervalues Take-Two at $25.74."

Thanks, GI.