Maker of Otis elevators and Chubb security systems, United Technologies Corp. (NYSE: UTX), announced Sunday that it had made an unsolicited $2.63 billion offer for Diebold Inc. (NYSE: DBD). Diebold is one of the largest makers of automated teller machines and voting machines, and United Tech's move comes as a part of its plan to extend its security business and presence in China.

United Technologies announced it first approached Diebold about a possible deal two years ago but nothing had materialized thus far. United Tech announced that its current bid amounts to $40 a share, a 66% premium to Diebold's closing price of $24.12 on Friday. The company also said a it may increase its offer if it is sees more detailed information.

George David, United Technologies' chairman and chief executive, stated that the "transaction creates significant and immediate value for Diebold shareholders with no operational risk, while creating long term value for UTC shareholders."

I decided to sell my position in Take-Two Interactive (NASDAQ: TTWO) today. I obviously wanted to take advantage of the nice jump in the share price following the buzz over the all-cash offer from Electronic Arts (NASDAQ: ERTS). As I write this, Take-Two's stock is up 52% from its previous closing value, and up somewhere around 29% from the price I paid near the end of 2007 for the stubs that I just dumped.

My reasoning is simple. I purchased Take-Two ahead of the expected stock appreciation that would occur in the months preceding the Grand Theft Auto IV release in April. Also, I felt that the company was improving and moving beyond the problems it experienced with corporate governance issues in the recent past. Well, with the significant move in the value of my shares in a relatively short period of time, and with the uncertainty regarding this deal, I decided to take the money and see if the funds might be better invested elsewhere. I don't necessarily want to be in the middle of a takeover battle; I'm sure shareholders of Microsoft (NASDAQ: MSFT) and Yahoo! (NASDAQ: YHOO) aren't the most content investors on earth right now.

Do I think Take-Two might be able to negotiate a better offer? Yes, I do. But I own Activision (NASDAQ: ATVI), and I am satisfied with playing the videogame sector via its shares for now. And I can always look at Take-Two after things settle. I believe selling Take-Two was the right decision for my portfolio.

Disclosure: I sold my entire position of Take-Two shortly before writing this, and I own shares in Activision.