Profits are harder to come by,....
this is no doubt true, so far, and EIDOS (EID.L, EIDSY) is adding insult to the injury today. After being nicely up on it (it recently traded $1.64 or 86p), the thoughtful Eid management puts out a true masterpiece, causing the shares to plummet 18%. I missed the special at 65pence, tho. But, I'm not mad. I am loading up on this level, Hedgefunds command the majority and the board will bow, EID will be sold in no time,
Press Release Source: Eidos
Eidos plc Response to Share Price Movement
Friday January 7, 12:45 pm ET
LONDON--(BUSINESS WIRE)--Jan. 7, 2005--The Board of Eidos (LSE: EID.L - News; NASDAQ: EIDSY - News) has noted the recent rise in the Company's share price. Although, as described below, discussions with potential offerors are continuing, the Board is not aware of any particular reason to justify this movement.
Since the last statement at the AGM, the Board has continued to conduct discussions, including detailed due diligence, with potential acquirors of the Company with a view to securing an offer. On the basis of these recent discussions, the likelihood and extent of any premium achievable to the market price prevailing before the recent speculative movements is unclear. Nevertheless, the Board remains committed to a sale of the Company in the best interests of its shareholders and will continue to pursue the discussions still under way with a view to securing an offer as soon as possible. However, there can be no assurance that these discussions will result in an offer being made nor as to the level of any such offer.
As previously reported the Company has a significant release line-up scheduled for the second half of FY05 and is reliant on the performance of those releases to reverse its expected substantial losses in the first half. The timing of the release schedule will lead to a working capital requirement in the second half which is expected to reverse rapidly as cash from game sales is received in due course. The Board will respond to this temporary requirement through the use of normal working capital resources and techniques.
Eidos plc is listed on the London Stock Exchange (ticker: EID.L) and on the Nasdaq National Market (symbol: EIDSY). Further information on the Company can be found at www.eidos.com
Eidos and the Eidos logo are trademarks of Eidos plc. All other names and/or brands and/or product names referred to in this release are registered trademarks or trademarks pending registration belonging to Group companies. All rights reserved.
Statements made in this release with respect to the Group's plans, strategies and beliefs and other statements that are not historical facts are forward-looking statements (as that term is defined in the United States Private Securities Legislation Reform Act 1995) that involve risks and uncertainties because they relate to events and depend on circumstances that may occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including without limitation, general economic conditions in the Group's markets, particularly levels of consumer spending; exchange rates, particularly between the pound sterling and the U.S. dollar, in which the Group makes significant sales; and the Group's ability to continue to win acceptance of its products, which are offered in highly competitive markets characterised by continuous new product introductions, rapid developments in technology, subjective and changing consumer preferences (particularly in the entertainment business) and other risks described in periodic reports and filings with the Security and Exchange Commission. The Company undertakes no obligation to update any forward looking statements contained in this release, whether as a result of new information, future events or otherwise.
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Contact:
Eidos
(UK)
Jonathan Glass or Wendel Verbeek, +44(0) 207 404 5959
or
Brunswick Group
(US)
Nina Devlin, (+1) 212 333 3810 |
