EA launches hostile bid for rival

Take-Two faces hostile takeover

13 March 2008 11:13 GMT / By Katie Scott

It seems EA Games is not going to give up on Grand Theft Auto developer, Take-Two.

Take-Two categorically rejected EA's $2 billion offer last month saying that EA was only going for it because it knew the hotly anticipated latest addition to the Grand Theft Auto series was to arrive in April.

But EA is not giving up and a source has told Reuters that it is now going to go directly to Take-Two's shareholders offering $26 a share, the same price at which it launched its all-cash bid.

Take-Two is expecting a major revenue boost from the launch of GTA IV on 29 April and has already said pre-orders are higher than it predicted so its quarterly earnings will also be up.

EA's current tender offer will expire on midnight on 11 April, but could then be extended.

Take-Two's annual meeting is scheduled for the day before the deadline.