EA extends T2 offer, cuts price per share

Deadline of buyout offer extended beyond GTA IV's April 29 release - will T2 bite?

Electronic Arts has extended its tender offer for rival publisher Take-Two by nearly one month at a lower price of $25.74 per share.

EA said that the new price, which still values the company at around $2 billion in cash, takes into account additional shares to be issued to Zelnick Media following stockholder approval of the amendment to Take-Two's incentive stock plan at its 2008 annual stockholders meeting on April 17.

The tender offer was previously set to expire at 11:59 p.m., EDT, on April 18. The revised offer will expire on May 16, a full two-and-a half weeks after the release of Grand Theft Auto IV (pictured).

"EA continues to believe that the offer price is full and fair, and that a transaction between Take-Two and EA is the most compelling combination financially, strategically and operationally for all parties," the company said in a statement.

At its annual shareholders meeting on Thursday, Take-Two chairman Strauss Zelnick told the company's major stock owners that the unsolicited EA bid "vastly undervalues" the publisher.

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