Media News: Pinewood shares rise after Peel bid

The share price of film studios Pinewood Shepperton has soared as speculation mounts that it could be the subject of a takeover bid from the developer behind the BBC's new home in Manchester.

An offer of 190p per share, or £87.8 million, has been put on the table by Peel Holdings, the company developing MediaCityUK in Salford Quays where a number of BBC departments will relocate to over the next couple of years.

A further rise in shares of 4% occurred on Monday following an initial surge of 14% when speculation was at its most intense on Friday.

If the takeover goes ahead it will see Peel expand on the 30% of Pinewood that it already owns. The company, which has almost £6 billion of assets, recently sold the Trafford Centre to Capital Shopping Centres for £1.6 billion.

Pinewood is the home of a number of major movie franchises including Harry Potter and James Bond and recently filmed the fourth instalment of the Pirates of the Caribbean.

Peel's plans will hinge on the support of investment fund Crystal Amber, which has built a 28% stake in Pinewood despite its recent calls for new leadership at the firm, which has former ITV chairman Michael Grade at the helm.