Original URL: http://www.theregister.co.uk/2005/03/22/sci_eidos_bid/

SCi launches bid for Eidos

Offers shares as alternative to Bono's cash

By Tony Smith

Posted in Financial News, 22nd March 2005 17:49 GMT

UK games publisher SCi has made a rival bid for Eidos after the loss-making games company's board said it was recommending a bid from U2 vocalist Bono's Elevation Partners.

The SCi offer amounts to £76.1m, just above EP's £71m bid, but would be transacted through a share swap rather than a cash purchase. SCi is offering six of its shares for each Eidos share.

According to the Financial Times, SCi already has the support of Schroder's - with a 20 per cent stake in the publisher, it's Eidos' largest shareholder.

SCi said it would issue extra shares to cover the swap. It would also attempt to raise £60.1m through a second share offer, with the proceeds being used to fund Eidos' revival. SCi reckons it can save £14m in costs by combining its operation with Eidos'.

Eidos' board said it would "consider" SCi's offer in the light of other alternative courses of action, including EP's "recommended cash offer". ®

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