Codemasters faces investor backlash over £726m sale to US-based rival Take-Two Interactive
Codemasters was last night facing an investor backlash against the £726million sale of the company.
The video games maker’s board has recommended the deal with US-based rival Take-Two Interactive Software, which is offering cash and shares.
But top investors have hit back and suggested the offer is too low.
Video games maker Codemasters’ board has recommended the deal with US-based rival Take-Two Interactive Software, which is offering cash and shares
James Thorne, UK equities portfolio manager at Columbia Threadneedle, a top 15 shareholder, suggested it could prompt rival offers.
‘The bid for Codemasters is not as high a valuation as some of the other quoted businesses in the gaming space trade on,’ he told the Times.
‘We would not be surprised if there were competing bids in the coming weeks.’
Codemasters chief executive Frank Sagnier would make £15.7million if the takeover goes ahead, while finance boss Rashid Varachia stands to make £7.1million.
Ian Bell, head of Slightly Mad Studios, which Codemasters bought last year, would make £9.2million.
Codemasters shareholders would get 120p and 0.02834 new shares in Take-Two for every share they own.