Electronic Arts has reportedly prepared to make a huge bid for Codemasters – outscoring the £725m agreed last month between Codemasters and Take-Two.
According to reports – bankers at UBS are working with EA on the offer for Codemasters which is likely to be announced to the market on Monday.
The value of the offer is currently not known, but Sky News claim that it likely be at a ‘substantial premium’ to its last closing price of 534p.
Moreover, fund managers are believed to welcome the bid from Electronic Arts as they felt that the offer from Take-Two didn’t provide enough of a premium on where Codemasters was previously trading.
Similarly, there is some concern that the exact price of the takeover from Take-Two would not be known as it was a combination of cash and shares – hence the value would change depending on the price of Take-Two’s stock.
Either way, this appears to be another major coup for shareholders in Codemasters and an early Christmas gift!
Should the EA bid come to fruition as expected – looks like Codemasters will be heading for a £1bn+ m.cap.