SCi announces termination of acquisition talks

British publisher SCi has announced that it has terminated all discussions relating to a possible sale of the company, ending months of speculation over the future of the London-based firm.

The company, which hit the headlines when it acquired its larger rival Eidos last summer after seeing off a challenge from rival bidder Elevation Partners, first revealed that it was in talks over a possible sale late last October.

Among the suitors believed to be interested in acquiring SCi were Elevation Partners - although that rumour mostly dried up after the venture capital firm acquired North American developers Bioware and Pandemic last year - and US publisher Midway.

However, SCi this morning informed the stock market in London that its board "does not believe that it is in the company's or the shareholders' interests to prolong talks any further."

SCi's share price dropped sharply for a few hours after the announcement, but by late afternoon the company's stock had rallied and at time of publication was actually trading up slightly over yesterday's closing price.

The publisher, which will face one of its biggest tests since acquiring Eidos in the coming months with the launch of the new Lara Croft: Tomb Raider title, expects to meet financial targets including a return to profitability for the Eidos business by the end of its financial year in June.

For the first half of the financial year, the firm reported revenues of over GBP 40 million - which was GBP 15 million ahead of its internal targets.