SCi Spurns Infogrames Buyout Bid

French Atari parent Infogrames wants to purchase Eidos parent SCi, and has already extended it a "financially disciplined" offer, Infogrames revealed today via a regulatory announcement.

However, says Infogrames: "The SCi Board has declined, at this stage, to entertain Infogrames' offer."

Infogrames is still raring to go on the bid, though, saying that it has "sufficient resources" to satisfy the offer, and adding it has also "secured commitments" that will help fund SCi's potential working capital requirements. "Importantly," the statement adds, "Infogrames is in a position to move expeditiously with its proposal."

This morning we reported on SEC filings (yes, there have been enough SEC filings to wallpaper my apartment this week) that revealed that Electronic Arts has amended its offer to purchase Take-Two. The previous offer expired today, but EA's back for round two, extending its deadline to May 16th. Although some analysts have speculated that EA would need to raise its offer in order to cinch this acquisition, the same SEC filing also shows that some change has actually been shaved off of the previous bid of $26 per share - the new bid is $25.74 per share.

Why, then, is the bid lower? Well, it's not because EA docked it. Last night, about an hour after Take-Two's annual meeting, the results of the vote that took place were announced, and as it turns out, Take-Two shareholders approved the extra cash and the 780,000 shares that the management team was seeking. The approval of that compensation package dilutes EA's offer - more stock equals less value per share - but many current shareholders were not allowed to vote last night. Only those who bought Take-Two stock prior to February 19th got a say - even if they don't own any stock anymore. In other words, Take-Two itself reduced the per-share value of EA's bid, even though the aggregate amount of the offer hasn't changed.

We'd heard some rumors out of Asia that this deal was already sealed behind the scenes, but when we spoke to Owen Mahoney, EA's senior VP of Corporate Development, he stated, "It's not in the bag." We also heard from Take-Two this morning that only 8.3 percent of total shares had been sold to EA.

Where does EA stand, then? Mahoney tells us the clock is ticking for this deal. Hit the jump for our full interview, plus comments from Strauss Zelnick on his side of things.

GTA IV is complete and in production; the trucks are set to begin shipments to retail. This is just one item of positive news that Take-Two's executives touted at their annual shareholder meeting.

On the table? In addition to a reinstatement of the board, that controversial compensation package to executives, through which Strauss Zelnick's ZelnickMedia stood to see their monthly pay go up from $62,500 to $208,333. The compensation package also includes a bumped up annual bonus, from $750,000 to $2,500,000 per year, and 600,000 shares of common stock that the management also gets as part of the same compensation boost. Only investors who bought shares before February 19th were able to submit ballots on these issues.

Even chairman Strauss Zelnick acknowledged, though, that what most of the stockholders really wanted to hear about was EA. And he held little back in a spirited attempt to convince shareholders that, at least for the moment, they were better off not selling.

Hit the jump for Kotaku's full coverage of what went down in the meeting.

Take-Two is apparently the object of a class-action suit by one of its alleged shareholders who claims, basically, that the circumstances surrounding Take-Two's refusal to sell to Electronic Arts are so fiscally irresponsible it's criminal.

Yesterday, we discussed the strategies Take-Two undertook to try and stall or thwart EA's bid. They've been refusing to talk with EA or explore offers, and they're doing their best to entrench the current Board of Directors with that compensation boost that features stock that takes three years to fully vest. They also implemented that stockholder's rights plan — the so-called "poison pill." As it turns out, someone who is allegedly one of Take-Two's stockholders is none too happy with these tactics — and he's ticked enough that he's taking the company to court.

When it comes to Electronic Arts' takeover bid for Take-Two, we've heard nothing but silence for the past few weeks. In fact, it looks like business as usual for both companies; while EA's been utterly quiet on the topic, Take-Two has announced an executive hire and an Asian expansion as if nothing were going on.

But tomorrow, Take-Two is set to hold its regularly-scheduled annual meeting for its shareholders, where they can hear from the executives and vote on internal matters. And although this may look like just another routine affair, it might become clear on Thursday night whether EA's bid is likely to succeed— or whether it will end up dead in the water.

Not so clear on what's going on? Hit the jump for the whole story, including the anatomy of a takeover, possible outcomes, the reasons behind Take-Two's resistance, and more.

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