Poor Sales, Takeover Rumors Send Game Developer Eidos' Shares 32% Lower

Authored by Mark Hefflinger on May 21, 2004 - 7:47am.

London -- Shares in U.K.-based video game publisher Eidos plummeted by nearly a third on Thursday after the company warned investors that sales of "Hitman: Contracts" -- the company's biggest game of the year -- would not meet targets. The company, which has been taking pains to quell recent rumors that it is the subject of a takeover bid, attributed the poor sales to "recent and unexpected softness" in the U.S. games market. Such "softness" could hit the company hard, lowering operating profits this year by as much as 9 million pounds ($16.1 million), Eidos said. While Eidos shares reached a 52-week high of 184 pence on Monday, they closed 32% lower at 120.50 pence on Thursday after the company denied a rumored takeover bid. In a statement, the board of directors announced that it had "received no such approach" and that it was currently "not in discussion with any party concerning a possible offer".
http://corporate.eidos.co.uk/eidos/media/news/release.jsp?ref=79