Square Enix on Thursday gave Tecmo Games a deadline to give a reply to its acquisition offer announced Friday before it would withdraw the offer.
The company gave Techmo unti the end of the day Thursday to decide whether it would accept its offer, a 30 percent premium over its share price.
Tecmo responded that though there is a “high possibility of improvement” to gain from a merger, it wasn't interested.
After the offer rejection, Tecmo announced that it's in talks to merge with Japanese video game developer Koei, known for its “Dynasty Warriors” series.
Square Enix is requesting more details from Tecmo on the merger with Koei.
Financial terms of the deals were not disclosed.