Lara Croft creator may be takeover target

Eidos, the UK-based creator of virtual heroine Lara Croft, could be a takeover target for French software firm Ubi Soft.

A report in the Financial Times said that, because Eidos has warned that sales for the current financial year could come in at less than £120m, as much as 12 per cent lower than predicted, it makes the company a likely target for acquisition.

Eidos also warned that it expected to make an operating loss of around £9m.

Yves Guillemot, executive chairman at Ubi Soft, was quoted as saying: "We are certainly going to grow by acquisitions this year. Within that framework, Eidos could be a target for us."

But Ubi Soft itself, famous for its Rayman series of games, has seen its shares fall 28 per cent this year, although fourth-quarter sales figures show a 14 per cent increase in revenue.

"Whatever happens, I think that [Eidos] will be bought in the course of the year," said Guillemot, who outlined plans to pick up strong brands from less well known firms such as Codemasters.

But analysts have said that, if Eidos is going to be sold, the deal has to happen before the next title in the Tomb Raider series - Angel of Darkness - hits the shelves in November.

The new release of such a popular title is likely to push shares in the company back up.

Eidos has been the subject of acquisition talks before. Two years ago, independent French games company Infogrames, creator of Driver and Alone in the Dark, held unsuccessful takeover talks with the firm.