RDF Media, the independent producer behind shows including Wife Swap and Faking It, has received a takeover bid from an unnamed consortium that includes the company's management team.
The AIM-listed company's independent directors, including chairman Richard Eyre, the former ITV chief executive, today issued a statement to the City revealing that an "indicative cash proposal" has been received from the consortium for RDF.
"The independent directors of RDF Media, Richard Eyre, Tim Weller and Maggie Carver, announce that they have received an indicative cash proposal to acquire the entire issued and to be issued share capital of the company from a consortium including RDF Media's executive directors, the statement said.
"Accordingly, an independent committee of the board of RDF Media composed of the independent directors will be formed to evaluate the indicative proposal.
"This approach is at a very early stage and there can be no certainty that an offer will be made or as to the terms of any such offer, should one be forthcoming. A further announcement will be made in due course, as appropriate."
RDF's share price soared after the announcement, up 31.5p by 2.30pm, a 33% increase on its opening price. RDF's market capitalisation is around £40m.
The buyout consortium is thought likely to include RDF founder and chief executive David Frank.
He is one of three executive directors on the RDF board, along with chief finance officer Janice Price and chief operating Joely Fether.
Frank, who founded the company in 1993, previously worked as a business reporter at the BBC and in the City as an investment banker.
Price joined RDF in 1996 after qualifying as a chartered accountant with Ernst & Young in 1990. Fether joined the company in 1997 as head of production and was promoted to COO in 2003.
RDF Media has built its reputation in the TV production industry on the back of a string of successful shows including Location, Location, Location, Shipwrecked, Faking It, Scrapheap Challenge and Ladette to Lady.
Some of its formats, such as How to Look Good Naked and Wife Swap, have also aired successfully in the US.
However, RDF ran into serious trouble in July last year over an incorrectly edited promo for a royal documentary, which showed the Queen apparently storming out of a photoshoot with celebrity snapper Annie Leibovitz, when in fact she was walking in.
Following a damning report from the BBC on the "Crowngate" affair, RDF's chief creative officer Stephen Lambert took responsibility for the error and resigned. Both ITV and the BBC imposed crippling commissioning bans on the production company.
In October RDF reported a 27% fall in half-year pre-tax profits, to £1.9m from £2.6m a year earlier, and warned on its full-year performance.
RDF's share price has fallen by more than 50% since May last year.
The company opened trading today at 95p – later rocketing to more than 125p on news of the proposed bid – but has been as high as well over 200p in the last 12 months.
RDF floated on the Aim stock market in London three years ago, with shares priced at 144p, valuing the company at around £50m.
Since then the company has been on an expansion drive, buying up other independent producers including IWC Media, Touchpaper Television, Presentable, Radar TV, The Foundation and The Comedy Unit.
RDF's most recent acquisition in February this year was History Television International, with which it co-produced the Crowngate documentary, which was eventually broadcast on BBC1 last autumn with the revised title Monarchy – The Royal Family at Work.
· To contact the MediaGuardian news desk email editor@mediatheguardian.com or phone 020 7239 9857. For all other inquiries please call the main Guardian switchboard on 020 7278 2332.
· If you are writing a comment for publication, please mark clearly "for publication".
