Media News: Al Fayed abandons Pinewood bid

Former Harrods owner Mohamed Al Fayed has walked away from plans to make an offer for film studios Pinewood Shepperton.

The decision paves the way for Manchester-based Peel Holdings, which already owns a 29.7% stake in the studios, to complete a full takeover.

Oak Bidco, a company of which Fayed is chairman of, had proposed an offer of 250p a share - or £115.5 million - but announced it was withdrawing its bid after it was turned down by Peel.

Peel now looks likely to take over Pinewood, which has made a number of blockbuster franchise films such as the James Bond and Harry Potter movies, after securing the backing of the board and major investor Crystal Amber. Peel's 200p-a-share bid values the studios at £92.4 million or £96.1 million including a final dividend.

In a statement to the stock market Oak Bidco said: "Mohamed Al Fayed and Bidco confirm that they have no current intention to make an offer for Pinewood."

However, it has left the door open to make another bid in the next six months in the event of a "material change in circumstances", the Peel bid failing when it is put to shareholders, or if an offer is made by another party.