Just_Ben said:
gnawkz said:
I think everyone always seems to forget the last option ... which is Take 2 might want to go at it alone ...
After reading the forbes article, located here:
http://www.forbes.com/2008/06/06/taketwo-ea-buyout-tech-enter-cx_0606taketwo.html?partner=yahootix
There is one large assumption that is built into all of this.
1. TAKE 2 MUST SELL/MERGE THE COMPANY
2. Management WILL/MUST SELL/MERGE THE COMPANY.
What happens if Take 2 doesnt want to do any of the above? Also when Zelnick says formal discussions have begun ... here might be a possible formal discussion:
"I would like to buy ur company for $X Billion" (interested buyer)
"No" (Take 2)
Thats what EA and Take 2 did before EA took their bid hostile. They were in "formal discussions" and Take 2 kept on saying "No".
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Shareholders not Take 2. In the end, shareholders decide. Even if Take 2 managmnet want to do something, the last word have the shareholders. They normaly tend to do what managment thinks is smart, but in the end they can do something totaly diffrent. Are there big shareholders of Take 2? I mean, would be intresting why so less go for the EA bid anyway.
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That is true, but then the assumption is that Shareholders want Take 2 to sell. 92% is controlled by institutional shareholders (the people who hired the current management team and board of directors), and only 6.2% of the shares outstanding have been tendered after 3 months of the bid.
I would say its probably much safer to assume Shareholders have already voted to keep the company the way it is and let management decided the outcome of the future, than to assume that Shareholders have already decided to sell/merge the company.
The actions of shareholders so far all show it to be the other way.
