EntertainmentOne plunges as ITV switches channels

25th Aug 2016 11:00

(ShareCast News) - ITV has withdrawn its proposed acquisition of Entertainment One, refusing to up its offer for the film and TV distributor after its "ITV continues to believe in the strategic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," the broadcaster said in a statement mid-morning on Thursday."It appears this value is different to the level at which the Board of eOne would currently engage in a more formal process."ITV said it would continue to search through what it said was a "healthy pipeline of potential investment opportunities" as it looks to diversify its business away from a reliance on UK TV advertising.ITV shares spiked up 1.7% to 205.3p on the announcement, while eOne plunged more than 13% to 217.26p.