COMPUTER games maker Eidos has confirmed it is in talks that could lead to a takeover of the company.

The group, best known for its Tomb Raider series, said it was in preliminary discussions with a small number of unnamed companies that may lead to an offer.

It is thought games publishers such as Electronic Arts could be among those interested.

The news follows a strategic review launched by Eidos in June as it warned shareholders it would fail to make a profit in the current financial year.

The group said then that it expected a break-even figure or a small loss because of its decision to delay the release of a key title until next month.

Eidos said yesterday that while it continued to keep all options under review, it is in preliminary discussions in relation to possible business combinations.

Shares in the group have risen by about 20 per cent during the past week.