Electronic Arts on Monday said it would no longer stand behind its $24.75-a-share takeover offer for rival games maker Take-Two, publisher of the Grand Theft Auto series, though it also edged a step closer to starting direct negotiations about a deal.

The latest manoeuvring between the two games companies pointed to a potential breakthrough in a stand-off that has lasted nearly six months, since EA first went public with its unsolicited all-cash offer.