June 11, 2008 / 2:10 PM / 10 years ago

UPDATE 1-Court asks Take-Two to explain FTC non-compliance

(Adds details from filing)

NEW YORK, June 11 (Reuters) - Take-Two Interactive Software (TTWO.O) has been asked by a U.S. court to show why it is not in compliance with a subpoena and civil investigative demand by regulators reviewing a takeover bid by Electronic Arts Inc ERTS.O, according to its regulatory filings on Wednesday.

The subpoena and CID, issued by the U.S. Federal Trade Commission, requested that Take-Two provide additional information in connection with EA’s $26-a-share offer to buy the company.

Take-Two, which makes the popular “Grand Theft Auto” video- game franchise, rejected a $2 billion buy-out offer from EA in February, saying the offer did not fairly value Take-Two’s business.

The U.S. District Court for the District of Columbia has scheduled a hearing on June 24 to determine whether Take-Two is required to comply with the FTC request.

Take-Two said in the filing it intends to oppose the FTC’s petition should it be unable to reach a settlement before the hearing.

    Take-Two said it has already provided FTC with “enormous quantities of data and access to key executives,” but said it believes the FTC’s subpoena and CID are “unnecessarily broad and would entail unacceptable additional expense.”

    It said to limit the expense and labor of the FTC’s demand it has sought to obtain reasonable limits on the scope of the information sought.

    Take Two’s management said last week it was in formal discussions with other parties about strategic alternatives. (Reporting by Yinka Adegoke, editing by Maureen Bavdek)

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