Shed Media Plc (LON:SHDP), the TV production group behind the likes of Waterloo Road, Supernanny and New Tricks, confirmed this morning that it was in discussions with Warner Bros Entertainment Inc, working with certain members of Shed management, over a possible offer for the business. The group insisted that there was no certainty that an offer would be made nor as to the terms on which any offer might be made. Nevertheless, shares in the group reacted to the news by rising 5.7% to 82.5p during the morning.

Earlier this month Shed said that talks over another possible deal, this time with private equity firms Bowmark Capital and Darwin Private Equity and members of the Shed management team, had ceased. However, it said that it had received a proposal from a new potential buyer, again working with certain members of Shed management, which may lead to an offer.

Speculation over a possible buy-out of Shed has been ongoing for some time. In mid-2008 the company received a management led proposal that was rejected and subsequently increased in December 2008 to 100p per share. The revised offer was also rejected and talks were terminated in January 2009. In the year to December 2009, the company reported a 13% increase in sales to £92.6m and pre-tax profits flat at £12.0m.

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