Peppa Pig fails to draw sufficiently wealthy suitors

Instead the company said that it plans to focus on acquisitions which its financial advisers are investigating.

Shares in the group, which produces and distributes film and television content, lost a fifth of their value in early trading yesterday despite it forecasting strong full-year results. The shares closed down 17.8 per cent last night, a fall of 35.5p to 163.5p.

Entertainment One said in a statement: “The board has considered various proposals that have been made for all or parts of the group and has concluded that these do not adequately reflect the company’s value.”

Entertainment One said that its financial advisers Credit Suisse and JP Morgan are evaluating a number of acquisition opportunities for the company.

A company spokeswoman declined to provide any further details.

Singer Capital Markets analyst Johnathan Barrett said the financing and macro environments would have materially affected value calculations on the part of bidders.

The company had been betting on the huge popularity of its Peppa Pig character to attract potential buyers.

In September, Entertainment One said it had received a string of takeover approaches. The pig’s cult status has put it on a par with children’s favourite Thomas the Tank Engine.

Peppa Pig was even courted by the Labour Party to appear as a mascot prior to the 2010 General Election.

The character is now the number one pre-school UK toy and is gaining popularity elsewhere around the world.

Entertainment One opened the Peppa Pig World theme park in Hampshire in April 2011.

It is also planning on launching a toy range in the United States in time for the 2012 Christmas season.

Peel Hunt analyst Patrick Yau said he was surprised by the halt in the sale process as the company has built strong momentum in its businesses.

Mr Yau wrote in a note: “We remain positive on the underlying fundamentals of the business and would see this as a buying opportunity for longer-term investors to come on board,”

The company, which is also the UK distributor of the supernatural romance fantasy Twilight movies, said it expects to report full year results in line with market expectations and that EBITDA margins improved.

Entertainment One’s rights library includes more than 20,000 film and television titles.

It also has 2,500 hours of television programming and 45,000 music tracks.