HAMPSHIRE computer games company SCi Entertainment Group is believed to be close to clinching a deal with movie giant Paramount to produce a game based on the classic 1960s film The Italian Job.

Shares in the games publisher have surged ahead on speculation about the deal, which is expected to be announced soon.

The group's shares closed at 128p yesterday, up from 100p on Friday, after week-end reports about the deal. They remained strong yesterday, trading around 119p.

In a brief statement to the London stock market, SCi refused to confirm or deny the speculation surrounding the deal involving the movie, which starred Michael Caine and Noel Coward.

However, it said: "The board of SCi Entertainment Group notes the recent upward movement in its share price.

"It notes that there has recently been a number of positive articles in the trade and national press, including speculation that the company may acquire from Paramount the rights to produce a computer game based on the best-selling film, The Italian Job.

"The board of SCi expects to make a further announcement in due course.''

The AIM-listed company, which is based in London and has a development office at Southampton, notched up an all-time closing high of 187p for its shares in July 1997. But last December they plunged to just 39p each.

SCi publishes a range of computer games including the controversial Carmageddon series on PlayStation, Nintendo 64 and Nintendo Gameboy Color.

The group created a storm of protest in 1997 when it tried to release Carmageddon, in which players scored points by running over pedestrians.

A ban was slapped on the game in May that year, but was lifted in November after SCi issued a toned-down version.

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