Are bidders finding Lara Croft's creators a less attractive prospect?

Traders blamed the slide on speculation about a possible profits warning and increasing concern about a takeover, according to Dow Jones Newswire.

"There's a bear story out there that the stock is worth around 30 pence and another profit warning is on the cards," one trader told Dow Jones.

Shares in Eidos closed 18p lower at 40.5p, earlier dropping as low as 40p.

Eidos, the creator of the Lara Croft series, was not immediately available for comment.

Takeover worries

Dow Jones added that market concern was also mounting that a planned sale of the company may now not go ahead.

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

In August last year the firm confirmed it was in takeover talks with a number of suitors that could lead to the company being sold.

But then in January it released a statement saying "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 size of Wednesday's share slide prompted further speculation about the status of bid discussions, the Dow Jones report added, saying there were fears that potential suitors were having second thoughts about tabling a bid.

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.

Group turnover in the year to June 2004 fell to �133.9m from �151.5m a year earlier as sales slowed in the second half of the year. For 2003 as a whole, the Eidos posted a �2m operating loss in contrast to a �13.9m profit in 2003.