EA has up to $1 billion loan commitment for Take-Two bid

SAN FRANCISCO (Reuters) - Video game publisher Electronic Arts Inc (ERTS.O) said on Friday it could borrow up to $1 billion to help fund its $2 billion bid for rival Take-Two Interactive Software Inc (TTWO.O).

Electronic Arts said the commitment from Morgan Stanley (MS.N) and other banks to lend it money had been in the works for months and did not signal that an agreement with Take-Two was imminent.

"There's no news here. This is just a process point on something we disclosed in February," EA spokesman Jeff Brown said when asked about the timing of the agreement.

Take-Two, which publishes the recent blockbuster game "Grand Theft Auto 4," has rejected EA's offer of $25.74 per share as too low.

The commitment for the senior unsecured term loan means EA can tap the funds any time until January 9, 2009 to finance the offer, the company said in a filing with the U.S. Securities and Exchange Commission.

EA also disclosed in the filing that it had $2.3 billion in cash and short-term investments as of March 31.

Other banks involved include BNP Paribas (BNPP.PA), Bank of Nova Scotia (BNS.TO) and KeyBank (KEY.N), EA said.

(Reporting by Scott Hillis; editing by Carol Bishopric, Richard Chang)