Noddy-owner Chorion linked with Hit bid

Mr Men and Noddy-owner Chorion is reportedly considering a £1 billion bid to acquire Hit Entertainment, the home of Bob the Builder and Thomas the Tank Engine.

The entertainment group is understood to have shortlisted three private equity firms to help fund a takeover of Hit Entertainment, which is owned by Apax Partners.

Chorion chairman Lord Waheed Alli has long made it clear that he wants closer links with Hit Entertainment, either via a full merger or commercial tie-up.

However, Alli's expansion plans are not thought to be well supported by private equity firm 3i, which owns the Chroion business.

According to media reports, Chorion has appointed investment bank Jefferies to broker a deal with one of the three private investors interested in the Hit deal.

Apax was initially just considering a sale of the Thomas brand to clear its debts, but now plans to sell off Hit Entertainment entirely. A price tag has been set at around £1bn, but industry experts believe that the business could fetch much less.

Chorion is expected to mount a firm bid for Hit in the first quarter of 2011, but will most likely face strong competition from US firms such as Viacom, Hasbro, Mattel and Disney.