Shares in SCi Entertainment soared today after the computer games developer confirmed it had received approaches from "various" suitors, further fuelling speculation over a possible bidding war.

Shares in the company, which owns the Lara Croft fanchise, gained 136p or 28 per cent to 614.5p at midday, valuing the London-listed company at around £440 million.

"The board of SCi notes today's press comment and confirms that it has received approaches from various parties which may or may not lead to an offer for the company," a statement said. A further update would be made "as and when appropriate".

A successful deal would follow SCi's acquisition of Eidos, the games maker that created Lara Croft, in May for £74 million.

According to recent unconfirmed reports Midway and Electronic Arts (EA), the US computer games firms have made separate approaches for SCi.

It is also thought that Apax Partners, the private equity firm, has expressed an interest in the company, which was worth £345.2 million before its statement this morning.

SCi declined to comment today.

According to reports, Midway, best known for the Mortal Kombat series of fighting games and controlled by Sumner Redstone, the chairman of Viacom, has led the takeover pack so far.

However, it risks being outgunned by EA, the world’s largest computer games firm, which is listed on the New York Stock Exchange and publishes titles such as FIFA Soccer and Harry Potter and the Goblet of Fire

SCi recently signalled that its aim to return Eidos to profitability within 12 months of ownership were within reach. Operating profits of £1.6 million were achieved by Eidos in the seven weeks after SCi clinched the deal in mid-May, fuelled by strong sales of its Championship Manager game and distribution of Lego Star Wars.

Jane Cavanagh, the SCi chief executive, is in line for a substantial windfall from a takeover deal. Ms Cavanagh, who founded SCi in 1988 and masterminded its stock market flotation eight years later, owns 6.7 per cent of the firm.

SCI last month posted a smaller-than-expected nine-month pre-tax loss of £14 million. It said it had made a positive start to the new financial year, with new releases including a new version of Lego Star Wars, and hoped to return it to profitability in 2006.

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive