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Square Enix Responds To Tecmo Takeover Rejection (Seems Baffled)

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Click to viewEarlier today, Tecmo rejected Square Enix's offer of a "friendly takeover." After collecting opinions from Tecmo staffers, the company decided that merging with Square Enix was not in its best interest. Instead, Tecmo has decided to pursue a merger with Japanese game maker Koei, best known for the Dynasty Warriors franchise. Both companies hope to balance their portfolios with the merger. When Square Enix originally announced its offer to Tecmo on August 28th, the famed RPG maker proposed offering to purchase a controlling interest in Tecmo by purchasing shares in that company at 30 percent premium. "I can only believe that our proposal will be accepted," said Square Enix president Yoich Wada (pictured) at press conference that same day. "I hope." If the plan was rejected by Tecmo (and it was), Square Enix originally stated: "We will withdraw our offer." Apparently, Square Enix is having a problem taking no for an answer as the company just released a statement:

The Company immediately requested TECMO for explanation of some issues as follows: 1. Please confirm that the decision on the start of discussions with KOEI toward integration of management is the reason for rejection of the Proposal. 2. If that is the case, please clarify concretely that major terms of integration of management with KOEI (form of the integration, stock prices assumption, integration ratio and so forth) are favorable for TECMO's shareholders than the Proposal. 3. If not, please clarify that TECMO has an alternative plan, which is favorable for TECMO's shareholders than the Proposal. The Company will make definitive decision on its plan immediately after receiving a response from TECMO.

Bwah? Square Enix's offer doesn't seem so "friendly" any more.

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