Noddy gives Basil the brush off

NODDY'S owner fired the first shot in anger in the battle with would-be predator Basil Brush today, saying the chap with the bell on the end of his cap had signed a pan-European merchandise distribution deal with Hasbro.

Chorion also confirmed it had received 'the latest in a long and unwelcome series of approaches' from Entertainment Rights, the maker of Barbie videos and Basil Brush TV series.

It has rejected the indicative offer, said to be some 25% above last Friday's closing price of 194p, which values the firm at £33m. Entertainment Rights is worth some £35m.

This unseasonal battle in Toyland is only the latest round in a fight which has been disrupting the nursery for the past three years. The companies are roughly the same size and have ambitions to close the gap on market leader HIT Entertainment, owner of Bob the Builder and Thomas the Tank Engine. It is valued at £418m.

Chorion chairman Lord Alli said: 'We now have a strong base for very significant growth in 2004 and 2005.'