Parties Bid For Sanctary Group
LONDON (Reuters) - Struggling British music company Sanctuary Group Plc (SGP.L: Quote, Profile , Research) said on Friday it had received approaches from third parties that could lead to a takeover offer, sending its shares as much as 50 percent higher.Sanctuary, whose artists include Morrissey and The Strokes, declined to say how many approaches it had received or to name its suitors.
In July, Sanctuary rejected an all-share bid proposal from MAMA Group (MAMA.L: Quote, Profile , Research), which manages the Kaiser Chiefs and Franz Ferdinand.
"The company confirms that it has received approaches from third parties that may or may not lead to an offer for the company," Sanctuary said in a brief statement.
At 1325 GMT, its shares were up 51.1 percent at a 6-month high of 17 pence, valuing the business at about 38 million pounds ($75 million), though still a fraction of their high of almost 37 pounds in 2000.
Sanctuary has been struggling since mid-2005, due in part to the disastrous acquisition of Urban Records, which it bought from Beyonce's father Matthew Knowles and Elton John's management company Twenty-First Artists.
After a series of delayed, rescheduled and cancelled releases from the label, Sanctuary said last year it would issue no more from it.
Sanctuary, co-founded by Iron Maiden manager Rod Smallwood and named after one of the heavy metal band's songs, reported an operating loss of 56.7 million pounds in the year to September 30.
It said in April that it would not achieve profitability until at least 2008 and that its recorded product division would miss expectations for this financial year.