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Take-Two Adopts New Change Of Control Severance Plan; No Update On EA Offer

Video game maker TakeTwo has adopted a new change-in-control severance plan, as it faces a hostile bid from larger rival Electronic Arts (NSDQ: ERTS). Under the new plan, the CEO would receive 1.5x his salary for 18 months following termination, while other executives would get a smaller multiple for a shorter duration. Below the executive level, the rank and file will get two weeks of severance for every year they’ve been at the company, up to 26 months. Any layoffs planned by EA get more expensive under this plan, but the plan isn’t nearly as generous as the plan Yahoo has adopted, so it’s not as much of a poison pill. Instead, it looks like a plan to ease the concerns of employees. More details in the filing.

In a separate filing, the company posted a letter from Chairman Strauss Zelnick and CEO Ben Feder explaining the new plan: “Last week we informed you of EA