UPDATE 1-SAC Capital reports 5.3 pct stake in Take-Two

(Adds FTC and deal background)

WASHINGTON, June 25 (Reuters) - Hedge fund SAC Capital on Wednesday reported that it owns a 5.3 percent stake in the common stock of Take-Two Interactive Software Inc (TTWO.O: Quote, Profile, Research, Stock Buzz), publisher of the blockbuster 'Grand Theft Auto' video game.

The fund said in a filing with the U.S. Securities and Exchange Commission that it acquired the 4.1 million shares, worth about $108 million, for investment purposes.

Take-Two is facing a takeover bid by larger rival Electronic Arts Inc (ERTS.O: Quote, Profile, Research, Stock Buzz), which it has rejected as being too low.

Earlier this month, EA -- publisher of such games as 'Madden' and 'Need for Speed' -- said it extended its $2 billion takeover offer for Take-Two until July 18 to allow the Federal Trade Commission to review the deal on antitrust grounds. (Reporting by Karey Wutkowski and Anupreeta Das; Editing by Gary Hill)