Entertainment retailer in prime position for takeover say analysts
Video games retailer Game Group is at the centre of potential bid discussions. The retailer sent out a statement to the City after a recent increase in share price.

It said: 'The board has noted the recent increase in its share price and announces that it is in discussions which may or may not lead to an offer for the company.'

Analysts agree that the time was right for the company to receive potential bid interest as it prepares to make the most of new hardware launches this summer and next year which should strengthen revenues.

Seymour Pierce analyst Rhys Williams said: 'These launches should drive forward demand, and with Game retaining a market leading position in game entertainment retailing, it should see significant sales in profit growth. We believe a suitable offer should be in the region of 95 pence to 100 pence a share.'

However one analyst remains a little sceptical about the statement as it follows a number of similar statements from other retailers, which came to nothing.

Shore Capital general retail analyst John Stevenson said: 'Once again investors roll the dice as to whether such talks will actually crystallise into a bid. We believe that Peacocks holds the record, with bid talks terminated less than 24 hours after the initial stock market announcement.'

Topics