Page last updated at 14:56 GMT, Monday, 18 August 2008 15:56 UK

EA rethinks its bid for GTA firm

Adverts for GTA IV
EA is keen to get its hands on best-selling games such as GTA

US video game giant Electronic Arts has decided to reassess its 1.9bn offer for Take-Two Interactive Software.

EA has so far had its $25.74-a-share bid for the Grand Theft Auto owner spurned by Take-Two shareholders.

And it said it was now impossible for any takeover deal to be completed in time for the lucrative Christmas shopping season.

Take-Two shares fell 5% on news that EA was allowing its offer to expire, but the firms said they were still talking.

'Validation' needed

The bid, made in February, was "predicated on distributing their [Take-Two's] products at Christmas this year", said an EA spokesman.

It would now have to "validate" the level of its offer, they added.

EA, which is behind games including Madden and Need For Speed, had taken its offer directly to Take-Two shareholders after its board rejected the bid as undervaluing the company.

After a meeting at the weekend, EA has agreed to attend a presentation by Take-Two which will include details of its product release schedule and financial forecasts.

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