Electronic Arts Likely To Win TakeTwo - UBS

Electronic Arts (ERTS) is likely to eventually win in its quest to buy TakeTwo Interactive (TTWO), UBS analyst Benjamin Schachter asserted in a research note this morning. Schachter contends a deal in the $26-$28 range should do it, although “the timing may be protracted.” While the stock is trading above the current bid price of $25.74 a share, Schachter says that “this is based more on deal speculation than underlying value.”

Schachter also contends that if “meaningful discussions” were occurring between TTWO and ERTS or another bidder, TakeTwo would have to disclose the talks. He says that suggests that TakeTwo’s management “may not be in serious contact” with ERTS and that no other bidder has emerged.