Shares digital

SCI Entertainment (SEG) – Interims PTP: -£81.4 million (-£17.2 million) Divi: n/a (n/a)

The shares in the video game group plunged 17% to 43.75p intra-day, as new chief executive Phil Rogers admitted the £38 million cap needs an extra £45 million-£55 million to fund the new direction he has outlined.

Rogers, who took over in January when founder Jane Cavanagh stepped down, noted the board would prefer to raise equity to pay for a £7 million restructuring charge, a change in business model and a refocusing of product development.

Even though SCI was the subject of a failed bid last autumn, Rogers admitted fresh offers would be considered, although not encouraged.

SCI’s shares had surged as high as 60p earlier last week, when Electronic Arts (ERTS:NDQ) launched a $2 billion bid for rival games developer Take-Two (TTWO:NDQ).

Shares says: Punting shares on takeover talk is a dangerous game, even if there is value here.

by: Russ Mould