Shares of eOne plunged after ITV withdrew its £1bn offer, saying the production company was unwilling to engage in talks.
eOne rejected ITV’s 236 pence-a-share takeover proposal on 10th August, saying at the time that the bid was too low but suggested it would be open to a higher one.
“‘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,” ITV said in a statement. “It appears this value is different to the level at which the board of eOne would currently engage in a more formal process.”
A deal for eOne would have boosted ITV chief executive officer Adam Crozier’s strategy of expanding the broadcaster’s production business to lessen its dependence on TV advertising. eOne would have brought the company the Peppa Pig franchise, with more than $1bn in worldwide retail sales in 2015, as well as a film distribution operation.