Sega rejects Microsoft tie-up reports
Date 4-Mar-2003 23:49:52
|Troubled software maker Sega, the parent of Sonic the Hedgehog, has dismissed reports of merger talks with either US games group Electronic Arts (EA) or Microsoft. |
"It is not true at all that Electronic Arts of the United States has sounded us on a capital tie-up," Sega president Hideki Sato said in a statement.
Sega insisted it would pursue a previously announced tie-up with a local pin-ball machine maker.
The denials sent shares tumbling back down 5% after press speculation about a merger last week saw them rocket up more than 15% higher on Friday.
Microsoft and EA have both denied the reports.
On 13 February, Sega and Sammy, Japan's largest maker of pinball-style "pachinko" machines, announced they would integrate their businesses by October and would consider a full merger.
"We will give the top priority to the earlier-announced integration of operations with Sammy and work towards it," the company said.
But the Sega-Sammy tie-up is seen as a takeover by the pinball giant and has been rejected by Sega's investors.
Sega reported its fifth successive full-year loss in 2001-02 and last year ditched its loss-making Dreamcast console.