The board of troubled UK games publisher Eidos has recommended the company's shareholders accept the bid launched on 22 March by rival publisher SCi. The board had previously backed an offer from investment group Elevation Partners.
"The board, who has been so advised by UBS Investment Bank, its financial advisor, consider that the terms of the SCi offer are fair and reasonable," the company said in a statement issued today. "Accordingly, the board unanimously recommends to Eidos shareholders that they accept the SCi offer."
SCi's bid, which offers one new share for every six Eidos shares held, works out at 73 pence a share - rather more than the 50 pence cash offer made by venture capital firm Elevation Partners' two weeks ago.
Until today, Eidos' board had been recommending Elevation's offer, much to the consternation of certain shareholders who preferred the SCi offer. Earlier this week, mumbles could be heard of a shareholder rebellion seeking to oust the apparently irksome executives.
Eidos board members had already said they were considering SCi's offer, and are believed to have been waiting on a retabled bid from Elevation before providing fresh guidance to shareholders.
While the Eidos board waited, SCi has been drumming up support among institutional shareholders. It now has the backing of the owners of 41 per cent of Eidos. Elevation may yet come back with an alternative offer.
Eidos acknowledged the existence of risks associated with the SCi offer, and invited any shareholder unhappy with those risks to sell their shares on the open market. ®