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SCi rejects new offer

Wed 23 Apr 2008 7:28am GMT / 3:28am EDT / 12:28am PDT
Business

The publisher turned down the latest offer over fears of funding difficulties

UK publisher SCi has confirmed that it has rejected the latest offer made for the company, saying the proposal failed to "represent sufficient value."

The unnamed third party's offer came with a "significant premium" on the publisher's current share and offered mostly equity consideration. However, the third party would have assumed responsibility for the company's future funding, a situation the SCi board refused to sign off on.

"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," the company explained in a statement.

The beleaguered publisher has fallen on hard times with its management team stepping down at the beginning of the year and announcing plans two months ago to cut 25 per cent of jobs and cancel 14 projects.

The company, behind Hitman: Blood Money and Tomb Raider Anniversary, had started to recover from a dip in share price late last year by opening itself up to takeover offers but has yet to agree on one.

It is speculated that NBC Universal may be brought in as a majority shareholder or that Time Warner will increase its current stake in the company.

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