ITV has withdrawn its proposal to acquire Canada’s Entertainment One after the two media giants failed to reach an agreement over the sale price.
The U.K. producer-broadcaster made the announcement Thursday morning (Aug. 25), stating in a release that the two parties appeared to have different views on the value of eOne, restricting the ability for talks to move forward.
Earlier this month, eOne rejected ITV’s £1.03 billion (U.S. $1.36 billion) acquisition offer. In a note to its shareholders explaining the rejection, the Toronto-based company said the ITV bid undervalued the company and its prospects.
ITV, however, countered that in its Aug. 25 company statement by saying: “ITV continues to believe in the strategic logic and potential benefits of acquiring eOne but has a clear view of the value of the business, recognizing that this value would need to be verified by appropriate due diligence. It appears this value is different to the level at which the board of eOne would currently engage in a more formal process.”
Following ITV’s withdrawal, eOne shares dipped Thursday morning from a high of 250.6 pence per share (U.S. $3.30) to a low of 205 pence per share (U.S. $2.70).
At press time, eOne has not issued a statement concerning ITV’s rescinding of the bid.
It’s been an eventful month for the Canadian media company. After rejecting ITV’s bid, the company’s shares were buoyed when it was reported that private equity firm KKR & Co. was considering a takeover offer. In mid-August, eOne announced it had completed its acquisition of Toronto digital studio Secret Location.
(from Playback Daily)