Eidos investors may sack board over failure to endorse SCi bid - report

Shareholders in Eidos are becoming increasingly frustrated by the company's failure to endorse SCi's bid for the company, according to British newspaper the Telegraph, which reports that some investors are considering sacking the firm's board.

Eidos advised shareholders on Friday to "do nothing" until it had fully assessed both deals, but up to that point it was continuing to recommend a 50 pence per share cash offer from US firm Elevation Partners.

SCi's bid, which offers one new share of SCi stock for every six share of Eidos held, is worth over 70 pence at this morning's opening prices - and despite the Eidos board's recommendation, institutional investors representing over 30 per cent of the firm's stock have committed themselves to the SCi deal already.

According to yesterday's Telegraph report, some other institutional investors are growing angry that the company has not yet endorsed the SCi bid - which, if successful, would almost certainly lead to the removal of most of Eidos' top management in a major restructuring of the firm's operations.

"It is beyond belief that the Eidos board has not yet revoked its recommendation of the Elevation bid," one shareholder told the Telegraph at 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."

However, other sources indicate that Eidos is waiting to see if Elevation increases its bid for the company - which might appease shareholders somewhat, and would prevent the company from having to pay the break fee of £700,000 which will be owed to Elevation if its bid fails.