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Tecmo to Team up with Koei?
09.04.08 - 12:02 PM

Tecmo today rejected the friendly take-over bid (TOB) launched by Square Enix last week.

Instead, the makers of Ninja Gaiden and Dead or Alive revealed that they have entered negotiations about a tie-up with Yokohama-based Koei. Tecmo expressed its belief that its value can be increased further, without joining the Square Enix Group. The company's management sees strong synergy effects in a potential merger with Koei, because the makers of Dynasty Warriors and Romance of the Three Kingdoms have a strong market presence in Asia, while the Tecmo brand has been stronger in the western hemisphere.

Square Enix reacted to the rejection by issuing a statement demanding Tecmo to explain whether it rejected the friendly TOB as a result of its negotiations with Koei and whether a potential Tecmo/Koei tie-up would constitute a more lucrative deal than Square Enix's proposal. Depending on the answer to the second question, Tecmo should furthermore specify a more lucrative alternative proposal. Square Enix's management would only decide its future course of action once Tecmo's management had provided answers to the aforementioned questions.




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Chris Winkler





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