Take-Two has been asking its shareholders to sit tight all while rival Electronic Arts dangles a juicy $2 billion USD buyout offer; one which turned hostile earlier this month when the mega-publisher grew impatient with Take-Two's management itself.  Apparently Take-Two's Board of Directors remains committed in making things difficult for EA, as it today confirms it will unanimously reject the rival's buyout offer... at least as it stands.  Naturally, the board is also advising company shareholders not to succumb to EA's direct appeal to tender their shares.

Take-Two maintains EA's offer to tender outstanding shares of common stock for $26 USD per share greatly underestimates the value of their company.  However, Take-Two is expressing interest in negotiating a more... favorable deal with EA, one which the publisher obviously hopes will maximize shareholder value.  Otherwise, Take-Two does not appear adverse to pursuing a merger with other third party companies, though it also values its current independance; essentially anything which can lead to a "higher stockholder value than the current EA offer."

In any case, what Take-Two will begin considering such options in earnest only after the publisher begins shipping Grand Theft Auto 4 this April 29th.  In doing so, the publisher may benefit from a higher closing stock price if sales are close to what is being predicted by anaylsts and gamers alike.  That could force an even better offer from third parties.

Analyst reaction to Take-Two's plan seem mixed.  For example, Kaufman Bros.'s Todd Mitchell believes Take-Two could nab a bid which prices its shares as high as $30-32 USD.  However, analysts like Wedbush Morgan's Michael Pachter believe that Take-Two simply won't be securing one from anyone other than EA at this point in the game.  In other words, it may have been a serious mistake for the publisher to reject of EA's current offer.