Private Equity Solutions

Eidos Deal Not Necessarily Done?

Private Equity Fund Of Funds It looked as if SCi's bid for Eidos had all put the company in their hands as recently as a few days ago. However, the struggle with the other company vying for Eidos, Elevation Partners is apparently not quite over yet.

As things stand the company's board is sticking to its recommendation that they accept Elevation Partners' bid of 50 pence per share. However, over 30 percent of the company's stock (mainly in the form of industrial investors) is behind the 70 pence per share bid of SCi. Those shareholders are not pleased with the board's refusal to endorse the SCi bid and reportedly some investors are considering firing the board.

"It is beyond belief that the Eidos board has not yet revoked its recommendation of the Elevation bid," a shareholder offered British paper The Telegraph during the weekend. "If it does not do what its shareholders clearly want it to do, we may be forced to call an EGM and get rid of the management."

Now there is some question as to whether or not Elevation Partners will increase their bid for Eidos. In a related story, John Riccitiello, former president of EA who is now the big cheese at Elevation Partners is lashing out at SCi, questioning their ability to handle the purchase of Eidos.

"While SCi is a successful company, it has little experience of integrating larger businesses, of running a major international video games company or in managing significant intellectual properties," Riccitiello said. "By contrast, EM Holding's cash offer provides certainty for Eidos shareholders."

Of course, AMN readers are not encouraged to take either side's word as gospel since they each want to win this little battle. We'll have more on this story as it develops.

FF&P Private Equity provides its clients with the opportunity to invest in the equity of high growth, unquoted companies whose objective is to generate attractive returns through the subsequent listing, or trade sale, of these companies. FF&P Private Equity invests typically â5 million to â25 million of equity per transaction and places particular emphasis on backing commercial managers with a track record in successful execution of business plans and enhancing shareholder value. //www.ffandp. equity.

[ Comment, Edit or Article Submission ]