EIDOS' STREETS STILL HAVE NO NAME
Copyright 2005 www.tombraiderchronicles.com

[ May 9th 2005 ]

Elevation Partners, the U.S. private equity group helmed by Irish rock star Bono, could be invited back to the bargaining table in a bid to swing support from shareholders of video-game publisher Eidos. Elevation had originally been pinned as favourite to snap up the creators of Lara Croft, but ordinary shareholders threatened a mutiny if Eidos didn't support an all-share offer from rival publisher SCi Entertainment Group.

A profit warning issued by Electronic Arts - the sector's weather bell - sent an aftershock through the industry late last week and wiped 34pc off SCi Entertainment Group's market capital. The decline valued SCi's all-share bid for Eidos at just 47p - less than the 50p per share which Elevation offered prior to winning the support from Eidos' Board.

In April, Eidos announced it would unanimously support an all-share offer from SCi Entertainment Group to the tune of 72.8 pence per Eidos share based on the closing price of SCi shares on 6 April 2005, which at the time represented a significant premium to Elevation's Offer.

SCi has witnessed a significant swing during morning trade, up 23.30pc to 307.30p. This increases the company's market capital to 87.46 million. Eidos has also accrued 3.02pc, elevating its market capital to 74.03 million.