Entertainment One has rejected a takeover bid from ITV, following the broadcaster’s offer of 236p a share for the company.
In a statement, Entertainment One said: “The company confirms that it has received a preliminary proposal with respect to a possible offer valuing the issued and to be issued share capital of the company at 236 pence per share, which may or may not lead to an offer being made for the company.
“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.”
The news of the potential acquisition was first revealed back in April, where reports stated that no sale was confirmed.
In another statement, ITV added: “ITV plc notes the announcements by Entertainment One Ltd. and confirms that it has made a proposal to the Board of eOne to combine the two companies. The Board of eOne has rejected this proposal.
“ITV has a clear strategy that, over recent years, has created significant value for shareholders. A key part of that strategy is continuing to build a scaled international content and global distribution business, with a focus on US scripted content.
“ITV believes that the proposed combination with eOne has strong strategic rationale and would further accelerate ITV's rebalancing of the business.”