Entertainment One, the Canadian company that owns the rights to popular children’s cartoon character Peppa Pig, has rejected a takeover offer of 236p a share as too low.
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‘The board of eOne has reviewed the proposal and has unanimously rejected it on the basis that it fundamentally undervalues the company and its prospects’.
It now has a market value of about £930m and the offer would take this to just over £1bn.
Entertainment One shares rose 6% after the announcement, to 232p, having risen 10% to 217.5p on Tuesday on talk of a bid.
Its Amblin Partners venture with Stephen Spielberg is behind this summer’s film, The BFG, based on Roald Dahl’s classic children’s book.
Film distribution and television production company Entertainment One has rejected a bid from ITV.
A deal between the two would have helped ITV broaden its business and boost its content offering as it seeks to reduce reliance on advertising revenue, which is expected to come under pressure after the Brexit vote.
Last month ITV Studios reported a 30% rise in revenues to £651mln, but it also warned advertising revenue could fall by 1% for the nine months ended September. A year ago, it bought Talpa Media, the maker of The Voice reality singing show, and Mammoth Screen, which produces the drama Poldark.
It recently appointed Sir Peter Bazalgette – the man credited with bringing Big Brother to United Kingdom screens – as chairman, who took over from Archie Norman in May.
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The statement was in response to speculation ITV had mounted a bid for the firm.
