ITV’s £1bn bid for Peppa Pig-maker Entertainment One (eOne) and a potential counter approach by the private equity giant KKR face challenges over the company’s use of tax credits, according to City sources.
Investment bankers said eOne, which is domiciled in Canada and listed in London, relies on tax incentives designed to boost the Canadian film and television industries.
Any buyer would need to take the “quite material” boost to its profits into account if a takeover would mean shifting its domicile, one senior media dealmaker said. Another added: “The thing about Entertainment One is it is a …
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