Game Maker Ubisoft Soars as Bidding War Looms (thanks HomeLAN Fed) has word that Ubisoft shares have jumped in price amid speculation that Vivendi Universal may step in and help Ubisoft fight off a rumored hostile takeover bid by games publishing giant Electronic Arts (story). Here's a bit that outlines the scenario, though it is pointed out that this may result in a bidding war:

French newspaper L'Agefi, citing a source close to the matter, said that Vivendi (EAUG.PA: Quote, Profile, Research) and Ubisoft had held preliminary talks on the issue.

A merger between Vivendi Universal Games and Ubisoft would create the largest video games group in Europe, with sales of more than 1 billion euros ($1.33 billion), although it would still be dwarfed by Electronic Arts.

Analysts said the tie-up would be encouraged by the French government which would be concerned about seeing French games technology fall in foreign hands.

Vivendi declined to comment while Ubisoft, Europe's third-largest independent video game publisher, had no immediate comment.