ITV has withdrawn its proposal to acquire Peppa Pig owner Entertainment One (EOne).
The broadcaster, which had a £1bn bid rejected earlier this month, said its valuation of the company appears "different to the level at which the board of EOne would currently engage in a more formal process".
EOne's shares plummeted 13 per cent to 219p following the announcement from ITV. ITV's shares were up two per cent to 205.10p.
25 August 2016 @ 11:00amEntertainment One Ltd (ETO)
Shortly after ITV made its offer it emerged that private equity house KKR had also approached the board of EOne over a possible takeover.
However, no formal offer has been made.
ITV said in a statement on Thursday morning:
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, recognising 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.
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.
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