Eidos confirms rumours of takeover talks

British publisher Eidos Plc has confirmed that it is in preliminary talks with a number of companies regarding a possible takeover bid, responding to recent speculation which has caused the company's share price to rebound.

In a trading update issued this morning, Eidos said that "preliminary discussions with a small number of parties in relation to possible business combinations" are taking place - but warned that it was not certain whether these would lead to an offer being made.

Shares in Eidos rose by over 10 per cent yesterday, carrying the company's stock price back over the 100 pence mark, and a further rise of almost four per cent has brought the price to 111 pence today in the wake of the announcement.

Eidos' share price had previously collapsed to around 90 pence after the company issued profits warnings ahead of the end of its financial year on June 31st. At that time, the company denied that any approach had been made regarding a takeover.