Eidos snubs Elevation for SCi

Eidos, the video game maker whose games include “Tomb Raider” and “Hitman”, has decided to accept a takeover bid from SCi Entertainment over that of US venture capital firm Elevation.

Its decision rests on recent movement in SCi’s share price and Elevation’s failure to tender an increased bid, and despite the risks associated with SCi’s much smaller size.

Last month, Eidos announced large losses and delayed release of new “Hitman” and “Tomb Raider” games.

Eidos must gain approval of the merger from its shareholders and says that 41 percent of its investors approve of the SCi deal.

Elevation, whose partners include U2’s Bono, seemed unlikely to offer a higher bid or to gain the level of shareholder approval that the SCi deal has.

By midday Thursday, shares in Eidos had fallen by 5.5 percent and SCi’s shares had gone up by 0.7 percent.

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