Wedbush Morgan Securities analyst Michael Pachter is predicting that Take-Two management will cave in and enter talks with Electronic Arts before the release of Grand Theft Auto IV.

We expect that in order to save face, Take-Two management will withdraw its demand that any discussions wait until after the launch of GTA IV, and we think that management will engage in discussions with EA

Aside from BioShock 2, which isn’t due for a release until late 2009, Pachter is disappointed with the company’s lineup for next year. The analyst believes that EA may raise its offer to $27 dollars per share, up from the original $26 offer, in order to complete a friendly transaction.

GTA IV to sell 9m units, ship 6m in first week [GI.biz]

Read more: Pachter: Take-Two Made A Mistake, Pachter: PS3 Caused GTA IV Delay, EA, Take-Two Sign Confidentiality Agreement Over Acquistion Talk, EA Not Reupping Take-Two Offer, E3 2007: Majesco Unveils E3 Lineup