ITV Withdraws Takeover Offer for Entertainment One

ITV CEO Adam Crozier

eOne's stock falls after the news that came following the company's recent rejection of a $1.3 billion offer, which led analysts to discuss whether ITV would consider a sweetened bid.

U.K. TV giant ITV on Thursday withdrew its takeover bid for Entertainment One.

Entertainment One had rejected a $1.3 billion offer earlier this month, but analysts said ITV could consider a sweetened bid.

"Further to the announcement made by ITV [in August] ... ITV announces that it has withdrawn its proposal to acquire Entertainment One," the company said.

"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 added. "It appears this value is different to the level at which the board of eOne would currently engage in a more formal process."

ITV concluded by saying: "ITV has a clear strategy to build a stronger, more diversified international business and will continue its disciplined approach to evaluating its healthy pipeline of potential investment opportunities."

ITV is led by CEO Adam Crozier. eOne's stock fell 13 percent after the announcement in the late London morning. ITV's stock was up 1.5 percent.

 

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