Square Enix have declared that they will make an offer to purchase the troubled Japanese developer, Tecmo.

Tecmo have been on a downward spiral ever since Tomonobu Itagaki, creator of the Ninja Gaiden and Dead or Alive franchises, quit the company after 16 years of service due to unpaid bonuses and derogatory comments made about him by president Yoshimi Yasuda in front of his colleagues. Rumours floated about regarding possible bankruptcy and closure of the company, and a court case has raged on between Itagaki, Yasuda and Tecmo.

Square Enix have assumed the role of the white knight, and have offered to step in to help out (possible save) the troubled Tecmo by outlining plans for a friendly takeover of the company.

Square Enix plan to buy Tecmo shares at a 30% premium (�960 a share) to obtain a controlling share in the company. If Tecmo decline by September 4th, then Square Enix have agreed to withdraw their offer. The official press release for the offer can be found here.

Meanwhile, another take over battle rages on as EA still have their jaws latched firmly on to Take-Two in the hopes that the publisher will eventually give in and allow EA to take over the company. We'll let you know how both deals go.