On Friday 12 it opened at $20.90 and closed at $21.89. It should drop at least to $20.90 (all those who bought it at that price or higher will be the first to sell). I expect stock to close at the lower $20's or high $19's. A great number of stockholders were not selling to EA, even though their offer was almost 4 dollars more than the current price. I doubt they will sell now that the price will go even lower, this alone should prevent the price from going lower than the original $17 stock price when all started. However, if the stock reaches $17, I expect shareholders to either request new discussions with EA, or ask for the management to step down (similar to what happened with Eidos in January). It all depends on whether the shareholders think these possible suitors TakeTwo talks about exist or not. If they think they do not, stock would drop all week (January 23 is the 52-week lower point, $13.53).
EA is not likely to let TakeTwo be bought by another company like Activision. My guess is that EA hopes the poison pill TakeTwo implemented will prevent efforts from these mysterious "suitors" to merge or buy them until they make their next move (maybe buying the different divisions one by one, especially Rockstar and T2?)
(At 13 UTC pre-market stands at $15.40. This will really hurt :-/ The explosions of Lehman and Merrill Lynch could have influenced this, nobody wants to hold risky stock when huge banks are crumbling)
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ReyBrujo's Comments
On Friday 12 it opened at $20.90 and closed at $21.89. It should drop at least to $20.90 (all those who bought it at that price or higher will be the first to sell). I expect stock to close at the lower $20's or high $19's. A great number of stockholders were not selling to EA, even though their offer was almost 4 dollars more than the current price. I doubt they will sell now that the price will go even lower, this alone should prevent the price from going lower than the original $17 stock price when all started. However, if the stock reaches $17, I expect shareholders to either request new discussions with EA, or ask for the management to step down (similar to what happened with Eidos in January). It all depends on whether the shareholders think these possible suitors TakeTwo talks about exist or not. If they think they do not, stock would drop all week (January 23 is the 52-week lower point, $13.53).
EA is not likely to let TakeTwo be bought by another company like Activision. My guess is that EA hopes the poison pill TakeTwo implemented will prevent efforts from these mysterious "suitors" to merge or buy them until they make their next move (maybe buying the different divisions one by one, especially Rockstar and T2?)
(At 13 UTC pre-market stands at $15.40. This will really hurt :-/ The explosions of Lehman and Merrill Lynch could have influenced this, nobody wants to hold risky stock when huge banks are crumbling)
All ReyBrujo's Comments