Shares digital

It is just three months since video games maker SCI Entertainment (SEG) issued its latest profits alert, admitted a bid approach had failed and warned it needs extra funding. Yet a fresh run in the shares back to the 60p level, well above their year’s 32p low, suggests a further takeover approach could be on the cards.

SCI, which is best known for its Lara Croft Tomb Raider range of games, continues to seek the £45-55 million in extra funding which new chief executive Phil Brown stated the £52 million cap needs if it is to implement the strategy he outlined at the time of February’s interims. Brown, who took over when January’s debacle persuaded founder and chief executive Jane Cavanagh to step down, has admitted fresh offers for the firm will be considered, but not encouraged. Takeover chatter has been further stimulated by Take-Two Interactive’s (TTWO:NDQ) decision to rebuff February’s $2 billion bid from rival developer Electronic Arts (ERTS:NDQ).

Shares says: Despite January's disaster, there is value here but the stock remains highly speculative until fresh funding can be found.

by: Russ Mould