THE SOUTHAMPTON company behind Thomas the Tank Engine could soon be teaming up with Bob the Builder after the pair's owners confirmed talks about a possible tie-up.

HIT Entertainment, which owns Bob - and Barney the Dinosaur, said it had approached smaller rival Gullane Entertainment from Southampton about a takeover.

The 500p a share mooted by HIT values Gullane at around £157m, although Gullane said discussions were still at an early stage.

Gullane is home to children's classics Thomas the Tank Engine, Sooty, Fireman Sam and the Guinness Book of Records.

HIT attempted to land Gullane two years ago but the London-based company's proposed 750p a share offer failed to progress.

A combination would create a significant force in the European children's entertainment market.