Eidos Share Discussion Threads

[life of crime] 12/2/2009 19:40

Well, well. I had a feeling, as per my post yesterday, that something was up when they casually announced JC2 was going to be delayed. That should have been a real blow, unless the debt issue had been resolved, or (as now know) a deal was in the pipeline.

The door has been left wide open for counter bids and I'm expecting more than one. Square were the last I expected to bid from the list of "Usual Suspects", such as EA, UbiSoft or TW. I feared TW had it all to themselves, so an auction is a bonus. I still expect TW to walk with this, given the amount they have already invested, their US distribution tie-up and the link in with their own IP, eg Batman.

It would not surprise me if this eventually goes for 50p, because that is still a steal for business with these assets. If it was up to me, I would want them to trade their way out of trouble but that would require a change of management and I don't think there is the appetite for yet another rescue plan. Short of this, then I would not be unhappy with a share swap involving UbiSoft stock, because they are a well run business who could maximise the potential of the Eidos titles.

We'll see, but if I had to make a bet then it would be on a cash bid from TW at circa 50p, following an auction involving several interested parties. I certainly expect Square to be disappointed but am glad that they set the wheels in motion for a bidding war.

[hyper al] 12/2/2009 19:00

just got back from holiday

well done holders

[arc2006] 12/2/2009 18:54

The more I think about it, I just can't see TW letting this go. There's no indication that they were consulted especially as the deal specifically details that they are obligated to sell their holding if recommended by the board unless they make a counter offer. ie the RNS reminds TW of their obligation. Doesn't suggest to me that they are supporting it. The other thing is what bethany3 has clarified above. If the directors are obligated to sell to sqex whatever happens then that is a sweetener to sqex for making the bid. ie. If TW outbid. Sqex make the premium on their 32p shares to cover their time an effort. Nice deal for everyone all round and perhaps will force TW to play their hand and roll in to protect their investment and pick up Eidos for what could be seen as a bit of a bargain. Or maybe TW will just take the cash?

All imho

[bethany3] 12/2/2009 17:52

PeterBill.......read Point 5 of the RNS under Irrevocable Undertakings. Basically means even if a higher offer, say 33p or more, comes in from anyone else the Board of Directors who are shareholders would still have to sell their holdings to Sqex for 32p unless the offer document is not despatched by Sqex within 28 days of today's RNS ie. if Sqex takes 29 days to dispatch the offer document after today's RNS then the Board of Directors would not be bound by this agreement.

[damac] 12/2/2009 14:40

Large queue formimng to get in here....

3,866,924 bidding at 31.5p v 15,487 selling at 31.75p

3,784,382 bidding at 31.25 v 372,879 selling at 32p

1,278,000 bidding at 31p v 118,000 selling at 32.5

No real numbers looking to sell, stock very hard to get!

[damac] 12/2/2009 14:31

"The Offer will be put to Eidos Shareholders at the Court Meeting and at the Extraordinary General Meeting. In order to become effective, the Scheme must be approved by a majority in number of the holders of Eidos Shares present and voting, either in person or by proxy, representing at least 75 per cent. in value of the Eidos Shares held by such Eidos Shareholders. In addition, a special resolution implementing the Scheme and approving the related Capital Reduction must be passed by Eidos Shareholders representing 75 per cent. of the votes cast at the Extraordinary General Meeting. The special resolution will also approve amendments to the articles of association of Eidos and, if necessary, to certain Eidos Share Schemes."


"It is expected that the Court Meeting and the Extraordinary General
Meeting will be held in March 2009 and that the Scheme will become effective before the end of April 2009."


IMO, unless you desperately need the money out for something else, it is pointless selling up just now. Effectively TW have until the meetings in March to put in an offer, until then the price will stay very close to the 32p mark if no further bid is forthcoming.

Been through all this lately with C&W takeover of Thus, the offer bid was £1.80 per share and the Thus shareprice shot up from around £1.35 to £1.79p, very rarely falling below the £1.79 mark before C&W got the required percentage acceptance for the takeover.

Unless a bid comes in from someone else, the Edios share price will stay around this current level until the meetings in March, bailing out now when TW have so much time to counter it is not an option for me. Each to their own though!

[harmoye] 12/2/2009 14:29

Great little tip for profits. emed is a gold stock on the rise. Nice spread, great potential!

[lionheart79] 12/2/2009 13:45

what great news to wake up to after a rare thursday off and lie-in. Im ready to sell out, no more stress for me. With Eidos you just don't know whats going to happen so I dont take the 32p as a rock hard guarantee. i know there is potential upside but... i cant deal with the pressure ;)

[parvez] 12/2/2009 12:33

dealy, if a bid war breaks out it could be worth lot more than 40p

[arc2006] 12/2/2009 12:31

Few punters willing to pay 32k to get £500 in a few months it seems.

[dealy] 12/2/2009 12:29

These are a free option at this price. If nothing else happens you get 32p. If TW make a counter bid you'll probably get 40p.

[parvez] 12/2/2009 12:20

Toggle, thanks for an umemotional response :) I will wait and see...no point selling out now..

[topcar] 12/2/2009 12:08

toggle, tou che ;-) sold out because, i just cannot take the risk, esp in this market.

[topcar] 12/2/2009 12:06

TW, have just posted a massive right down, billions, infact you would think they were a bank, do you really think they give a toss about the relative small loss on SEG ???

Do you think TW were approched, before this bid was made ? imo absolute YES,

31p is a lot bloody better than 0, my avg was 35, iam already celebrating !!

[togglebrush] 12/2/2009 12:05

If TW bid it must be at highest price paid in the year which was 35p in May 08 for the rights issue. A 15% premium must be paid to gain institutional support so that is 36.80p.

Then what is the knock out punch. Square are a big company with cash resources. Not as big as TW but they have just reported billion $ quarterly losses. But the cash involved here is peanuts to them. So the fight could be interesting IMHO. We will see.

[parvez] 12/2/2009 11:54

If TW see the value they will obviously bid for more. They must know what the value is if they have bought at an aveage of £1.10 to-date. Does this mean that if they do bid, they would have to offer a minimum of £1.10? If so the managment at Eidos obviously smart to try flush out TW...

[wonder boy] 12/2/2009 11:34

I'm out. Convincing argument TC. And let's face it I just got 31.25p for an otherwise worthless bit of paper. 35% loss and lesson learned.

[damac] 12/2/2009 11:26

I'd say 'wait and see', can't see TW letting go without a fight.

[swabyk] 12/2/2009 11:25

Does anyone believe they will see 34/35p anytime over the next few days or has this got to it's limits now?

[topcar] 12/2/2009 11:24

just sold, all the stress, to break even, lucky imo, live and learn.

[arc2006] 12/2/2009 11:24

Got to be a wait and see.

[wonder boy] 12/2/2009 11:23

Very quiet given the news. What's everybody doing? Buy, sell or hold?