MyFFXI's The NM: Issue 11: Why Tecmo Rejected Square EnixHello MyFFXI members, well it looks like SE is not getting Tecmo after all...
Tecmo has moved to explain the reasons behind its decisionto reject a takeover proposal from Square Enix in favor of merger talkswith fellow Japanese publisher Koei.
"To answer Square Enix's proposal within the time frame of one weekprovided little room for negotiation and discussion.”
Tecmo rejected its offer in favor of merging with Dynasty Warriors company Koei. Most curious. Square Enix had three questions for Tecmo:
1. Please confirm that the decision on the start of discussions withKOEI toward integration of management is the reason for rejection ofthe Proposal.
2. If that is the case, please clarify concretely that major termsof integration of management with KOEI (form of the integration, stockprices assumption, integration ratio and so forth) are favorable forTECMO's shareholders than the Proposal.
3. If not, please clarify that TECMO has an alternative plan, which is favorable for TECMO's shareholders than the Proposal.
Tecmo didn't answer these questions until today...
1."The reason why the Tecmo board members did not accept this offer isbecause of the decision to begin merger talks with Koei."
2. "Supposing this is the case, then the plan to merge with Koei(form of the integration, stock prices assumption, integration ratioand so forth) is concretely beneficial to Tecmo shareholders."
3. "Supposing this isn't the case, then we would disclose alternatives that would be advantageous to shareholders."
“Conversely, regarding the proposal from Koei, there is time formanagement to consider how to integrate and most likely arrive atultimately raising our corporate value. This is why we have begun talkswith Koei concerning corporate integration.”
“… The plan to merge with Koei (form of the integration, stockprices assumption, integration ratio and so forth) is concretelybeneficial 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 downin order to focus on merger talks with Dynasty Warriors publisher Koei.The comments issued by Tecmo directly address questions aimed at thecompany by Square Enix following the rejection of the Final Fantasymaker’s proposal.
Source: EDGE, Kotaku
