Eidos Board Recommends SCi Bid To Shareholders News
Jon Wilcox
07/04/2005
After much deliberation, the Eidos board have finally come to a decision...
Following on from previous news this week that the Eidos board were still weighing up the two take-over bids, and the subsequent calls by Eidos shareholders for the board to resign, UK trade publication MCV has today reported that the board at Eidos have come to a decision on which bid to endorse â“ the SCi share bid.
In a statement, Eidos commented that, âIn the light of the recent movement in the SCi share price and in the absence of an increased cash offer from Elevation, the Board recognises that whilst there are certain key risks for Eidos shareholders in accepting the SCi offer, the current implied value of the SCi offer⦠represents a significant premium to Elevationâs offerâ¦Taking these factors into consideration, the Board, who has been advised by UBS Investment Bank, its financial adviser, considers that the terms of the SCi offer are fair and reasonable. Accordingly, the Board unanimously recommends to Eidos shareholders that they accept the SCi offer.â
SCi have been working hard in the past few couple of weeks securing the backing of several key Eidos shareholders including investment firm Merrill Lynch, with shares in Eidos increasing in that time from a figure in the low 30.00p a share up to figures beyond the 70.00p a share mark.
Weâll have to wait and see whether SCi is backed by the rest of the shareholders in the coming weeks, but the curtain may now be beginning to fall on the bid made by Bonoâs Elevation Partners.