Wednesday, March 23, 2005

Eidos SOLD, not yet

Surprise, surprice, SCi decided to get into the bidding game in the end. Damian Reece from The Independent wrote a story covering the new development. Some general themes form the article:

Eidos owner Schroders is backing SCi’s offer and that has caused some tension between Eidos management and ownership. Eidos CEO Mike McGarvey expressed his concern over SCi’s ability to manage such a large operation as Eidos is. This new offer from SCi is larger than previous offer, set by Elevation Partners and with at least partial backing of Eidos ownership, is likely to pass, if there will not be new offers on the table.

Market appears to have positive look towards the development as the price of SCi rose during the day. Of course it might just be so that Eidos management is afraid of loosing their positions, because at SCi management costs as compared to turnover are much lower than at Eidos. If SCi deal pushes through things are bound to change at Eidos, but if Elevation deal triumphs, Eidos management maintain operational control.
Post a Comment