SCi acquisition talks still underway; first half sales beat projections

British publisher SCi, which last year acquired larger rival Eidos, has confirmed this morning that talks over a possible takeover bid for the firm are still underway, answering market speculation over the status of the company.

SCi originally revealed in October that it had received approaches from potential suitors, and was in talks with them regarding a possible takeover - less than six months after the firm acquired its fellow South London-based publisher Eidos.

Last Friday, however, shares in SCi took a tumble on the London Stock Exchange, dropping almost as low as 480 pence from a high of nearly 550 pence earlier in the week, with speculation that the acquisition talks were dead in the water believed to be the cause.

Early this morning, the company released a statement to the exchange confirming that talks are still in progress - and revealing that sales for the first six months of the financial year, ended December 31st, were well ahead of the firm's own projections.

Revenues for the period, which represents the first full six months of integration between Eidos and SCi, were above GBP 40 million - approximately GBP 15 million ahead of the internal budgets being used by SCi.

The company said that it is confident of meeting its targets for the current financial year - which include a return to profitability for the Eidos group - with major titles including the next chapter in the Tomb Raider franchise, Tomb Raider: Legend, due to launch in the coming months.

The stock market has responded positively to the statement, with shares in SCi opening up significantly at over 495 pence, and trading throughout the day so far remaining over the 500 pence mark.