TORONTO — Shares of Toronto-based Nelvana jumped nearly 10% Wednesday on speculation that the kids animation company may be in takeover negotiations with Corus Entertainment.
The stock was boosted by unsubstantiated rumors and media reports that Toronto-based radio and specialty TV company Corus had expressed an interest in taking over Nelvana, who is receptive to the offer.
“The rumors on the street are rampant,” said one media analyst, “but they remain unsubstantiated, so we’ll wait and see.”
The analyst added that there had been an earlier rumor that Nelvana had put itself up for sale for a time late last year or early this year, but that that had been unsubstantiated, too.
In the meantime, shares in Nelvana, which is involved in merchandising and publishing, and whose television arm created “Franklin” the turtle and “Little Bear,” climbed C$2.50 ($1.68) to close at $22.13 on the Toronto Stock Exchange.
No one at Nelvana nor Corus was available for comment.
