Microsoft-Activision Deal Odds Dwindle as UK Watchdog Takes Aim

Traders are becoming increasingly unsure whether Microsoft Corp.’s proposed $69 billion takeover of Activision Blizzard Inc. will go through, after Britain’s antitrust watchdog became the latest regulator to challenge the deal.

Activision shares slumped as much as 4.2% on Wednesday and closed down 3.6% at $72.89, putting them more than 23% below Microsoft’s cash offer of $95. The gap between Activision stock price and the takeover bid widened after the UK Competition and Markets Authority voiced its opposition to the tie-up.