Tecmo has moved to explain the reasons behind its decision to reject a takeover proposal from Square Enix in favor of merger talks with fellow Japanese publisher Koei.

"To answer Square Enix's proposal within the time frame of one week provided little room for negotiation and discussion,” Tecmo said in a statement translated by Kotaku.

“Conversely, regarding the proposal from Koei, there is time for management to consider how to integrate and most likely arrive at ultimately raising our corporate value. This is why we have begun talks with Koei concerning corporate integration.”

“… The plan to merge with Koei (form of the integration, stock prices assumption, integration ratio and so forth) is concretely beneficial to Tecmo shareholders," the company added.

The statement was released almost two weeks after Square Enix announced that it hoped to acquire more than half of Tecmo in a deal valued at over $100 million, a proposal that Tecmo turned down in order to focus on merger talks with Dynasty Warriors publisher Koei. The comments issued by Tecmo directly address questions aimed at the company by Square Enix following the rejection of the Final Fantasy maker’s proposal.