Eidos shares have had a rough ride during the past 12 months

The UK company began a strategic review in 2004 after issuing a profit warning, and investors have been speculating it will eventually be bought out.

The shares, down more than 40% in the past year, jumped 7.5% on Friday.

That prompted a statement from Eidos at the end of Friday, stressing there was no "particular reason" for the surge.

Monday's fall is "purely a reaction to that statement", said David Pannell, director of research, at investment bank Durlacher.

Game delayed

Eidos said that while it will keep trying to find a buyer, it cannot be certain a suitor will be found.

There can be no assurance that these discussions will result in an offer being made Eidos Latest Eidos share price

"The board remains committed to the sale of the company," Eidos said, adding that it will "continue to pursue the discussions still under way with a view to securing an offer as soon as possible".

"However, there can be no assurance that these discussions will result in an offer being made nor as to the level of any such offer."

The comments echoed earlier statements made by Eidos on a number of occasions.

Eidos has had a rough ride since early 2004 when its shares tumbled after it warned of a sluggish games market, particularly in the US.

Adding to its problems, Eidos announced in October that it was delaying the release of the latest game in its popular Championship Manager series in the run up to the key Christmas trading season.