Two of Take-Two Interactive's biggest investors, Oppenheimer Funds and FMR LLC, drastically cut their shares in the company, Reuters reports, a sign of "shareholder unrest" that could be bad news for company management. After a rejected buyout offer from EA was made public, it helped boost the Grand Theft Auto publisher's stock price nine points in one day, making for some assuredly pleased stockholders. But now that Take-Two management have claimed the buyout terms "undervalue" the company, shareholders may be unwilling to wait for a dip in their investment.
So what's the damage?
According to Reuters, Oppenheimer cut its stake in T2 by half, with FMR LLC dropping its 14.75% ownership of the company down to 2.75%. That's approximately 8.8 million and 2 million shares, respectively, with neither firm giving reason for the sale.
Wedbush Morgan analyst Michael Pachter is quoted as saying that a speculated shareholder holdout for better buyout terms may be out of the question, now that two of the bigger owners of Take-Two are bailing out.
Take-Two is planning to announce its quarterly earning on Tuesday, so we'll see what developments occur soon enough.
Take-Two shareholders slash stakes [Yahoo/Reuters]