GTA publisher Take-Two continues to believe that EA's proposal undervalues their assets. Janco Partners' Mike Hickey thinks that EA will have to raise its bid several more dollars per share.
Although a number of analysts have said that EA's $26 per share offer for Take-Two Interactive is the best deal Take-Two would get – or that EA would raise its offer by a dollar or two at most – Janco Partners analyst Mike Hickey believes that EA will have to go as high as $30 per share in order to seal the deal.
"We continue to believe EA wants to buy Take-Two but will likely have to raise their tender to $30 per share if they expect to close the deal. We maintain our view EA's bid will prove insufficient after talking with TTWO shareholders and our approximation that at least 35% of the TTWO's shareholder base consists of arbs. We do not believe EA has accumulated more then 25% of the Company's shares in their current tender, which should provide them minimal leverage in pressuring the Company's board in favor of their $26 bid," he said.