French software group Infogrames Entertainment is moving to acquire troubled games company Eidos, developers of the succesful Tomb Raider games.

The companies are discussing an all-share transaction worth £720 million, sources claim. Eidos has issued two profit warnings in recent months, as it grapples with problems reprogramming its software for next-generation gaming platforms.

It could take another three weeks before a deal is formally announced, according to Reuters. Infogrames purchased GT Interactive and its subsidiary, MacSoft, last year. Infogrames also announced its move toward broadband at Milia, Cannes, this year.

Infogrames also has publishing and distribution rights for Epic’s Unreal titles.