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Takeover talk at Tomb Raider firm

16 January 09 09:49 GMT

UK computer games publisher Eidos has said it has received an informal takeover approach from an unnamed suitor, sending its shares up 23%.

Eidos, which is best-known for its Tomb Raider series of games, said talks were at an early stage, and it was not sure that a formal bid would be forthcoming.

The news comes a week after the firm was forced to issue a profit warning.

Eidos said this was a result of weak US sales of the latest edition of the Tomb Raider game, the eighth in the series.

The London-based company said that as a result, its full-year sales were likely to be between £160m and £180m, down from its previous estimate of between £180m and £200m.

Annual loss

Eidos said that further statements regarding the takeover talks would be made in due course.

US media giant Warner Brothers has a stake of around 20% in the company.

Eidos shares were up 2.75 pence or 23% to 14.77p in early Friday trading.

Last September it reported an annual loss of £136m after revenues fell from £129m to £119m.

Separately, Nintendo said continuing strong demand for its Wii and DS games consoles had resulted in record European sales last year.

It said it sold 8.3 million Wii units in Europe in 2008, a 58% increase on 2007.

European sales of the DS totalled 11.2 million.

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