FMR cuts stake in Take-Two to 2.75 percent-filing

DETROIT, March 10 (Reuters) - FMR LLC, the parent company for the Fidelity mutual funds, on Monday reported that it has dramatically cut its stake in Take-Two Interactive Software Corp (TTWO.O) to 2.75 percent from 14.7 percent.

FMR disclosed in a filing with the U.S. Securities and Exchange Commission that it has cut its passive stake in Take-Two to 2.04 million shares from 10.9 million shares, but did not detail when it sold the shares or the reason behind the transaction.

The video game publisher is the target of a $1.9 billion takeover bid by bigger rival Electronic Arts Inc ERTS.O. It said last week that it had adopted a severance plan for employees who would get fired in the event the company was bought.

Take-Two is gearing up to launch "Grand Theft Auto IV" on April 29 in what is widely expected to be the biggest video game debut of the year.

FMR said it filed the ownership statement because it is no longer the beneficial owner of 5 percent of Take-Two's common stock. (Reporting by Karey Wutkowski, editing by Gerald E. McCormick)