game publisherFederal Trade Commission
On Monday, Electronic Arts Inc (ERTS.O) said it would allow
its hostile $2 billion bid for rival video game publisher
Take-Two Interactive Software Inc (TTWO.O) to expire and
instead pursue private talks with the company.
In separate letters to the two companies dated August 18,
the FTC said it had conducted an investigation of a merger of
the companies.
"Upon further review of this matter, it now appears that no
additional action by the commission is warranted at this time.
Accordingly, the investigation has been closed," the letters
said.
Shares of Electronic Arts were 2.3 percent higher to $47.48
in late morning trading, while Take-Two stock rose 4 percent to
$23.99, both on Nasdaq. Take-Two shares had stood at around $17
in February, just before EA's first offer was announced.
EA said on Monday its chief executive, John Riccitiello,
and Take-Two Executive Chairman Strauss Zelnick held talks over
the weekend, and Take-Two's management has agreed to present
its three-year product pipeline and financial forecasts to EA.
EA, publisher of the popular "Madden," "Need for Speed" and
"Rock Band" games, had offered $25.74 per share in April for
Take-Two, which rejected the price as too low.
(Reporting by Diane Bartz; Editing by Tim Dobbyn)
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