The Sanctuary Group has confirmed it has met with representatives from its smaller rival, the MAMA Group, to discuss their previously reported takeover proposals. This follows that announcement last week from MAMA, who own UK music company Channelfly, that they were making a share-only offer for their bigger but struggling competitor. At the time Sanctuary bosses said they were awaiting the release of their latest set of accounts before discussing MAMA's proposals further, and they subsequently met with MAMA shortly after those accounts were released on Wednesday.
Following that meeting, the Sanctuary board issued a statement on Friday formally knocking back MAMA's proposals, telling the investment community: "Following this meeting, the directors of Sanctuary have concluded that the approach from MAMA is without merit and is not in the interests of Sanctuary shareholders. Sanctuary has therefore rejected the MAMA approach and terminated discussions. Going forward, the Board believes that Sanctuary has a strong, independent, long-term future".
MAMA had said that it may attempt a hostile takeover if the Sanctuary board showed no interest in their proposals - so it now remains to be seen if they now go through with that threat. Interesting times could be around the corner.