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STOCKWATCH: Eidos rises as Infogrames bid comes closer to fruition

LONDON (AFX) - Shares in UK games publisher Eidos PLC were up sharply in
morning trading on reports that Infogrames Entertainment SA, a French publisher,
had made a 700 pence bid for Eidos.

At 10.15 am, Eidos was up 60, or 12.32 pct, at 547, off highs of 570.

Observers said the reports that the long-rumoured deal was finally nearing
fruition came as little surprise.

"Infogrames has been on the record saying that Eidos would be a good fit,"
said one analyst. "This is the price I've been quoting for the past couple of

Today's gains reflects the mood of optimism about a successful deal, he
said. "When Eidos was at 450, that was pricing in the possibility of a deal. The
rise today is about people becoming much more confident that it will come off."

The price stood a good chance of sticking unless bidding interest could be
worked up from other companies, the analyst said.

Some reports have suggested that U.S. publisher Electronic Arts is a likely
alternative bidder, with some analysts suggesting that a 700 pence offer leaves
headroom for EA to come in with a higher bid.

"Electronic Arts could be interested," said one. "There was an interview
with one of their big cheeses a few days ago saying they'd had no talks with
Eidos. But then again, two weeks ago Infogrames were saying the same thing."

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