Eidos shares climb in London as media reports say major publishers are looking to buy the ailing company.
Eidos shares spiked yesterday on the London stock exchange as speculators, anticipating that a takeover of the publisher was imminent, sought to increase their positions in the wobbly publisher. Shares in Eidos Plc climbed 11 percent, closing at 1.07 pounds (about $1.95).
While news of the looming takeover was reported in various mainstream and financial newspapers, yesterday there was no consensus as to who the buyer might be. "Gossips...reckoned French games developer Ubisoft could be lining up a bid," said the Express. "Speculation has centered on American players Activision and Electronic Arts as the most likely buyers of the company," said the Independent.
The Guardian also chimed in, saying "Infogrames [is] in the background." However, the French publisher seems the least likely candidate. Besides a weak earnings report that has sent its stock slipping--its shares lost 15 percent of their value yesterday alone--the company has a checkered history with Eidos. Infogrames was in talks to buy Eidos four years ago, but those talks cooled almost as quickly as they began.
News source: GameSpot
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