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SCi Rejects Unnamed Acquisition Offer
by David Jenkins
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April 23, 2008
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Officials from British publisher and Eidos Interactive owner SCi Entertainment has announced that the company has rejected a new offer made by a still unconfirmed suitor, citing concerns over short and medium term funding.
Earlier in the week SCi officials confirmed rumors of an offer, but refused to name the company, or companies, in question. The confirmation was made in response to rumors of a $100 million offer from NBC Universal and possible renewed interest from Warner Bros.
The deal under consideration made an offer for the company at a significant premium to SCi’s current share price. However, the proposal offered mostly equity consideration and the unnamed third party would have assumed responsibility for SCi’s funding requirements.
SCi’s board has decided that the proposal, which also included significant due diligence and other unspecified conditions, was not in the company’s best interest.
In particular, SCi was concerned over its own short and medium term funding requirements, which it deemed would come under unnecessary risk during a prolonged takeover procedure.
“The pursuit of an uncertain takeover proposal with consequent delay and risks to the company's proposed issuance of new equity to fund the execution of its revised strategic plan would not be in the best interests of the company or its shareholders,” said a company statement. “Accordingly the company is not pursuing discussions in relation to this proposal and the proposed equity fundraising remains the company's priority at this time.”
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