| Oyvoyvoyv said: I can't see how the shareholders are going to say no to this. There's been questions about the American market plummeting, and lots of insecurity in the market. Now they can get 60% more than the last value. That's a lot of money. |
From what I've read, a lot of the shares are no longer in the hands of the original shareholders. Since EA made their bid, some "arbitrageurs" have bought shares at prices close to $26 (EA's offer), in the hopes of making a few cents of profit per share (or $1 or $2 more dollars than that if they can convince EA to pay more).
What this means is that many of the people who originally had Take Two's shares have already taken their profits, and now it's more in the hands of people who just care about the immediate money they can make from the conclusion of this deal.
Related articles:
http://www.rttnews.com/sp/breakingnews.asp?date=03/10/2008&item=172&vid=0
http://uk.reuters.com/article/internetNews/idUKN1225828120080313
Some quotes:
Asked about that view, EA's Riccitiello said: "I knew a couple weeks ago that a number of shareholders were steadfast in their view that the offer needed to be above $26, but some of them have already sold at that. Now it's held by new people, and at the right moment they will consider our offer."
One arbitrage trader who specializes in takeovers said investors had to weigh the certainty of cash now against hopes that the shares would rise in a shaky economic environment.
My Mario Kart Wii friend code: 2707-1866-0957
