Eidos shares drop as firm calms takeover speculation

British publisher Eidos has confirmed that it is still in talks with a number of suitors over a potential takeover, but has moved to calm speculation that a deal may be close, leading to a drop in the company's share price.

Shares in the company were down almost 17 per cent at the end of the day on Monday, following a surge of around 7.5 per cent on Friday which prompted the firm to issue a brief statement concerning the buyout negotiations.

Reiterating comments made by the company several times in recent months, Eidos confirmed that it continues to work towards a sale, with discussions underway with a number of parties - but nothing as yet assured regarding their final outcome.

The Friday surge, thought to have come off the back of speculation that a deal with a major publisher could be close for the British firm, was described as having no "particular reason" in the statement.

"The board remains committed to the sale of the company," Monday's statement read, going on to say that the negotiations are "still under way with a view to securing an offer as soon as possible... However, there can be no assurance that these discussions will result in an offer being made nor as to the level of any such offer."