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Metrodome in talks with Target

Transatlantic film distributor Metrodome Group has confirmed it is negotiating to buy or merge with UK producer and distributor Target Entertainment Group.

Metrodome, whose films include Donnie Darko and Monster, last night confirmed the two companies were holding talks but said a deal had not yet been completed.

The discussions will continue “with the intention of negotiating a purchase of all or part of Target,” it said. In the meantime, Metrodome has suspended its shares – a move required by London’s Alternative Investment Market if there is the possibility of a reverse takeover.

However, it is thought that other companies, such as UK superindie Endemol, are still interested in Target.

Target CEO Alison Rayson owns about 27% of the firm’s shares, while entrepreneur Richard Thompson holds 31% and the rest are owned by Acuity Capital.

Target has been looking for a buyer for nearly a year, and last week appointed financial services company BDO Stoy Hayward to speed up the process. The company was badly affected by the recession and undertook a number of cost-cutting measures last year.

The group owns rights to about 6,000 hours of library titles, including children’s titles Fifi and the Flowertots and Storm Hawks, as well as dramas including Foyle’s War.

Metrodome has interests in film, TV, video-on-demand and DVD distribution. It claims to make 70% of its revenue from TV and home entertainment, which has moved its focus away from film. It is headed by executive chairman and CEO Mark Webster.

Target declined to comment at press time.

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