INVESTORS THREATEN TO OUST BOARD
Copyright 2005 www.tombraiderchronicles.com

[ April 4th 2005 ]

Investors in Eidos - the company behind the Tomb Raider video game franchise currently the prey at the center of a hunt between SCi and U.S. equity group Elevation Partners - are threatening to oust the company's board if it rejects a takeover bid in favour of SCi Entertainment Group, Bloomberg.com notes during morning roundup.

A stalemate has ground proceedings to a halt with analysts speculating Elevation Partners - helmed by Irish rock star Bono and armed with a 500 million pound war chest - will revise their initial offer for beleaguered publisher Eidos to see off a rival acquisition from SCi.

Elevation Partners and SCi are both vying for Eidos, even though a statement issued on behalf of Eidos says the firm has already accepted an all-cash offer from Elevation Partners to the tune of 50 pence for each Eidos Share and each Eidos ADS (each Eidos ADS representing 1 Eidos Share) for the whole of the issued and to be issued share capital of Eidos.

Elevation's all-cash offer values Eidos at 71 million pounds against an all-share offer from SCi Entertainment Group valuing Eidos at 76 million pounds. SCi are expected to cull numerous management posts if it succeeds with an acquisition of Eidos, whereas Elevation Partners says existing management will remain in place.