ITV bid talk buoys Entertainment One

Shares in Peppa Pig owner and Oscar-winning Spotlight distributor Entertainment One shot up 10% today after reports that it is the latest takeover target for ITV.

That was despite the London-listed film and TV programme distributor — which is handling the present thriller starring Dame Helen Mirren and the late Alan Rickman, Eye in the Sky — saying it had not been approached.

In a short, two-line statement to the stock market it said: “Entertainment One notes the press speculation regarding a potential offer. No approach has been received by eOne.”

The shares gained 16p to 174.6p valuing the business at £755 million. The shares climbed as high as 328p last summer but were hit badly last December when the business unexpectedly raised £285 million of new debt which significantly increased its interest costs.

ITV declined to comment today.

But analysts at Liberum, who have a price target of 385p and a Buy recommendation on eOne shares, said: “We believe that this deal would make sense for ITV.

“ITV has the financial capability to do this deal and acquiring EOne’s business would significantly build ITV’s content reach.”