It took Mitsubishi UFJ nearly four months to get UnionBanCal to accept its takeover bid.

That it took so long for Japan’s Mitsubishi UFJ to clinch the deal is at first blush surprising. Mitsubishi UFJ owns 65 percent of UnionBanCal. And UnionBanCal is based in California, the epicenter of the housing market, which has weakened many a bank.

But UnionBanCal had surprising leverage in these negotiations. It has largely sidestepped the credit mess, and the special committee of the bank’s board of directors said last week that other banks’ difficulties were creating opportunities for it.

And amid the credit crunch, Mitsubishi UFJ was reluctant to allow negotiations to drag on too long, for fear it would distract UnionBanCal’s management, the Wall Street Journal reported.

In the end, MUFG placated the board, but it came at a much steeper price than it had initially offered. The deal was reached at $73.50 per share, which is 27 percent higher than the $58 it initially offered in April and 16.7 percent more than last week’s bid of $63 per share. The final bid is also substantially higher than the 52-week-high for the stock before last week’s bid.

Longs Drug Stores Corp recommended that its shareholders accept a $2.54 billion, or $71.50 per share, takeover offer from CVS Caremark Corp after holding unsuccessful merger talks with Walgreen Co.

In an SEC filing, Longs said it had held talks with an unnamed suitor that had offered $70 per share, but negotiations faltered over concerns about antitrust hurdles. A source familiar with the situation said that suitor had been Walgreen.

Despite the recent articles in the press about the dearth of tech IPOs, PEHub says it has nothing to do with tech itself, or the usual culprits of onerous regulation and the difficulty of getting analyst coverage. Instead, tech IPOs are just suffering along with everyone else amid the IPO market worst slowdown in years.

The New York Times’ Deal Book wonders why the potential acquirers in hostile tech takeovers seem to pursue their quarry so half heartedly, pointing to Electronic Arts allowing its tender offer for Take Two Interactive expire tonight, and Microsoft’s “wishy washy” pursuit of Yahoo.

OTHER DEALS OF THE DAY:

** Brinker International Inc said it agreed to sell a majority interest in restaurant chain Romano’s Macaroni Grill to an affiliate of private equity firm Golden Gate Capital for $131.5 million in cash.

** Mahindra & Mahindra Ltd India’s top tractor maker, said it would take a 51 percent stake in a joint venture with a Chinese firm and the venture would acquire the latter’s tractor operations for $50 million.

** BASF put more of its plastics business up for sale as the world’s biggest chemicals group faces a looming petrochemicals supply glut in the Middle East and rising feedstock prices.

Progress?

Video games company Electronic Arts has just updated Wall Street on the latest stage in its drawn-out $2 billion bid for Take-Two Interactive Software with news that it will allow its tender offer to expire at midnight New York time.

But Take-Two, maker of the Grand Theft Auto video game franchise, said it is now willing to provide a management presentation to EA containing non-public information in connection with the bid such as its three-year product release schedule and financial projections.

EA and Take-Two’s chief executives exchanged letters over the weekend and had a phone conversation on Friday.

Here’s an excerpt from Take-Two chairman Strauss Zelnick’s letter to EA Chief Executive John Riccitiello dated Aug 17:

The Company has made significant strides since EA first expressed interest in the Company….I believe our presentation will enable you to understand better the value of our Company to EA.

 Here’s an excerpt from Riccitiello’s Aug 18 response:

We no longer believe we can integrate Take-Two ahead of the important holiday season….we  require due diligence to support a transaction and are therefore letting the tender offer expire tonight. However, we are pleased to accept your offer to review your management presentation as outlined in your letter.

(Photo Reuters)

Keep an eye on:

* Wal-Mart to sell rock band AC/DC’s album exclusively. (Wall Street Journal)

*US Federal Communications Commission will decide next month if it plans to employ unused TV channels to provide cheap high-speed Internet networks. (Wall Street Journal)

*NBC has been a surprise winner at the Olympic Games in Beijing. (New York Times)

Japanese banking heavyweight Mitsubishi UFJ Financial Group has tarted up its offer for California bank UnionBanCal by 17 percent to $3.5 billion. That’s $73.5 per share and above the $70 that market insiders were expecting. MUFG already owns 35 percent of the California lender, and is hoping that more exposure to the subprime stricken west coast will help revitalize its core business. Analysts are skeptical this strategy – no matter how cheap or well insulated from the subprime meltdown the U.S. assets appear – will have the desired results. MUFG’s first quarter net profit fell by 66 percent on a lousy economy and anemic credit conditions, and the bank has forecast virtually no growth this year. Investors looking to get a foot in the door could be betting that banks with significant foreign stakes will be more likely to be pursued.

Nothing humming for GM in Asia. Mahindra & Mahindra, India’s top utility vehicle maker, says it is not interested in buying the brand that has become synonymous with the guzzling of gas, but will instead focus on its own models for the key U.S. market. “There has been a lot of speculation. I want to say categorically we are not pursuing Hummer,” Vice Chairman Anand Mahindra said at a news conference. In China, a source says Hunan Changfeng Motor has backed off from preliminary takeover talks. GM has explored a sale in Russia, as well, sources have said. Russian billionaire Oleg Deripaska’s car unit, Russian Machines, last week also denied it was seeking to buy Hummer.

Bankers for Bradford & Bingley have been left to sell over 70 percent of its 400 million pound cash call, the UK lender said, as it hired the former head of rival Alliance & Leicester to draw a line under its troubles. The mortgage bank, which has seen a torrid three months since it first surprised the market with news of an emergency rights issue, named City veteran Richard Pym as chief executive with immediate effect. Underwriters Citi and UBS now have until Friday to place the remainder of the cut-price, twice-restructured offering.

Michael Page Chief Executive Steve Ingham has reiterated his demand for Britain’s Takeover Panel to issue a “put up or shut up” notice to Swiss suitor Adecco, the world’s biggest staffing agency. Ingham admitted, however, that the group’s Friday rejection of Adecco’s 400 pence a share or 1.3 billion pound ($2.43 billion) offer proposal is “not the end of the matter”. Earlier, Adecco said it was keeping all options open and refused to rule out a hostile offer. Adecco has said it will keep pursuing Michael Page despite the rejection.

Other deals of the day:

* South Korea’s STX Group said it was more than doubling its stake in No. 1 European ship maker Aker Yards, to 88.4 percent through a $635.5 million tender offer as it seeks to grow its portfolio of businesses.

* POSCO, the world’s No.4 steelmaker, is seeking to partner up with a financial firm and South Korea’s National Pension Service to bid for Daewoo Shipbuilding, a source close to the situation said.

* Dabur Pharma said the World Bank’s private sector lender, International Finance Corp, has sold its entire shareholding of 12.14 million shares in the company.