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SCi shares rocket as it encourages Warner Bros bid

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SCi shares rocket as it encourages Warner Bros bid

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.

Shares

posted by NASA Oct 27, 2008 at 5:44 pm
1
NASA

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.

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Re: Shares

posted by John Higgens Oct 27, 2008 at 5:48 pm
2
John Higgens

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.

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Re: Re: Shares

posted by blobby Oct 27, 2008 at 6:05 pm
3
blobby

@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.

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Re: Re: Re: Shares

posted by Phil Rodgers Oct 27, 2008 at 8:56 pm
4
Phil Rodgers

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.

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Re: Re: Re: Re: Shares

posted by merger arb Oct 28, 2008 at 12:14 am
5
merger arb

Nasa your no rocket scientist, it obvious SCi will be added to Time Warners media portfolio

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Re: Re: Re: Re: Re: Shares

posted by Ohrate Oct 28, 2008 at 3:45 pm
6
Ohrate

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.

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Re: Re: Re: Re: Re: Re: Shares

posted by Fools gold Oct 29, 2008 at 5:14 pm
7
Fools gold

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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