According to the Bloomberg news agency, privately-owned buy-out specialist KKR & Co is reportedly mulling a bid for the London-listed Canadian film and distributor that would top the 236p per share cash offer ITV put on the table last week.
Advertisement
Analysts have named Walt Disney, Vivendi, Lionsgate and Studio Canal as possible suitors for Peppa Pig owner Entertainment One.
KKR is studying a potential proposal, though no final decision has been made and it could still decide against pursuing it, said the people, who asked not to be identified because the deliberations are private.
KKR’s interest raises the prospects of a bidding contest. The investment firm’s potential interest increases the prospects of a bidding war for Entertainment One after the film and tv company rejected a takeover proposal made by broadcaster ITV plc on August 10 that valued the business at about GBP1 billion ($1.3 billion), the report said. It came just days after eOne said it had rebuffed a a £1.03 billion ($1.3 billion) takeover bid from U.K. TV giant ITV.
Shares of Entertainment One rose to as much as 258.8 pence, and were up 6.8 percent at 255 pence as of 8:30 a.m.in London.
A move to acquire eOne falls in line with ITV’s strategy of increasing its ownership of content in order to reduce its reliance on advertising revenue.
“A more interesting question is whether ITV would want to retain the “Peppa Pig” franchise or would look to sell it to a more children’s-orientated company”, Liberum suggested.
Advertisement
A deal for Entertainment One could bolster ITV’s efforts to remain independent after it has been the subject of repeated rounds of takeover speculation.
