SOUTHAMPTON-based Britt Allcroft Company, the media group behind children's favourite Thomas the Tank Engine, is in talks about a possible offer.

"The company is reviewing a number of strategic options to maximise shareholder value. One of these options is to secure an agreed offer.

"An approach has been received and discussions are ongoing," the company said in a statement.

One analyst said the group, which also boasts much-loved children's characters Sooty and Captain Pugwash, would be a prized target.

The company said it would make a further announcement "in due course".

It gave no further details but media reports said a bid could could come from HIT Entertainment, which makes children's TV shows.

News of the talks sent Britt Allcroft shares soaring. The stock was up £1.60, or 25.4 per cent, to £7.90, hitting a fresh year high in the third straight day of gains.

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