Take-Two shares rise on takeover speculation
Publisher sees stock rise over 20% since Wednesday on acquisition rumours
Shares in Take-Two rocketed yesterday on more rumours of an impending acquisition announcement, jumping over 12 per cent on the day and over 22 per cent since last Wednesday, to trade at USD 9.45.
"There has always been speculation this is a take-out candidate," said Janco Partners analyst Mike Hickey on Bloomberg, giving the stock a Buy rating.
Last year Electronic Arts made a USD 25.74 offer for Take-Two which was rejected, resulting in a messy PR war between the two companies as the former attempted to woo the latter's investors into selling up.
But Take-Two's management held firm and following the release of Grand Theft Auto IV EA cooled its interest, eventually pulling out altogether.
EA's share price fell by 1.4 per cent yesterday, although it was not explicitly named in the most recent takeover rumours.