Hit’s potential bidders get more time

Hit Entertainment has set a deadline of May 13 for potential bidders interested in taking over the Bob the Builder firm to make firm counterbids to the rival £489m offer from private equity firm Apax Partners.

Independent directors reiterated their recommendation to vote in favour of Apax proposals today. In a statement, the company said: “The independent directors believe that it remains too early to assess whether either of the potential competing offerors will make a formal offer for Hit.”

The latest move follows producer/distributor Lions Gate Entertainment asking for more time to consider a bid, which might be in the region of $1bn (£528m).

It is thought that Lions Gate may tie up with a private equity firm to finance the deal. US company Classic Media, owner of the rights to Lassie, is also interested in Hit and has joined with buy-out firm Thomas H Lee to explore bidding for the children’s entertainment company.

Despite passing over financials to the two firms, both have yet to make a formal offer to rival Apax’s proposal.

Apax has already won support from just over a third of Hit shareholders, including outgoing chairman Peter Orton, directors Mike Luckwell, Steven Ruffini, Charles Caminada and Nigel Birrell, as well as Deutsche Asset Management, DC Thomson & Company, Rosemary Leach and Sheryl Leach, which together hold some 35.5% of Hit shares.

Hit Entertainment’s portfolio includes Bob the Builder, Thomas the Tank Engine, Barney, Angelina Ballerina and Pingu. The company was launched in 1989.