
Eidos parent’s stock jumps 11% after it waives curb on media giant’s buying options
Shares in SCi Entertainment Group jumped 11 per cent today, after it lifted a restriction stopping Time Warner from raising its stake in the company without consultation.
As reported by MCV this morning, SCi has scrapped a "standstill" arrangement with Time Warner subsidiary Warner Bros.
The agreement – which had been in place since April – prevented Warner Bros. from acquiring more SCi shares without the Eidos parent’s consent until January 2009.
SCi said today it will now allow Warner Bros to buy more shares without consultation until December 1st – providing its stake doesn't reach 30 per cent.
According to CNN, shares in SCi increased by two pence today following the announcement – or 11 per cent – to reach 20 pence.
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Warner Bros bought five million shares in SCi on October 16th, taking its stakehold to just over 16 per cent – amplifying speculation that the entertainment media giant was organising a buyout bid for SCi.
Comments
Shares
2 pence I would not exactly say is rocketing, and just goes to show how low the shareprice is when 2p equates to over 11% Besides the share price has been fluctuating like this for weeks, and certainly before the Warner announcement.
When the markets see the price is above 22p, watch it fall again just as quickly.
Re: Shares
If I had shares in SCi (and I'd bought them in the last two months – avoiding the 90-odd percent drop over the previous year), I'd certainly be glad for this 'rocket'. 11% rise is certainly not to be sniffed at, and if Warner takes its stakehold to 30% this month, things really can only get better.
Re: Re: Shares
@2
Well said. 11% is nothing small. Things can only get bet for the share-price and SCi if Warner invests more.
As for a full buy-out....well there are bot advantages and dis-advantages of that. So we'll have to wait and see.
Re: Re: Re: Shares
As a previous poster has pointed out, less than 12 months ago the shareprice was over £5.00, so to agree with posting 1, then 2p is nothing.
Re: Re: Re: Re: Shares
Nasa your no rocket scientist, it obvious SCi will be added to Time Warners media portfolio
Re: Re: Re: Re: Re: Shares
surely, it isn't about the actual amount of money the increase is, the invester will look at ROI in terms of percentages. there isn't a bank in the country that would offer you 11% on your savings. assuming you missed the drop and jumped in low you could make a really nice return out of SCi at the moment.
Re: Re: Re: Re: Re: Re: Shares
Hardly worth the text is it - all shares are rocketing, oh crashing, no rocketing at the moment.
When will we all wake up and notice SCI are not a company who has ever delivered share value, and never will.
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