RDF Media, the maker of Wife Swap and Location, Location, Location, said discussions were nearing completion with a consortium featuring Cyrte Investment, a company set up by Big Brother media mogul John de Mol. The bid group is led by RDF's chief executive and founder David Frank.
RDF said an announcement outlining a recommended offer of 120p a share - equivalent to around £52m - was expected in the coming weeks. Shares jumped 42 per cent to 99p today.
The company has been adversely affected by the fallout from last year's controversy, which stemmed from a trailer that was incorrectly edited to suggest the Queen had stormed out of a photo shoot. This caused both the BBC and ITV to impose a commissioning ban on the firm and this September RDF said half-year UK revenues were down nearly 14 per cent to £27.2m as a result.
However, the company has since said that relations with both broadcasters were returning to normal.
Its independent directors, which includes former ITV boss Richard Eyre, said it was not certain that a formal offer would be made for the company, but urged shareholders to sit tight until the next announcement.
Netherlands-based business Cyrte was set up in 2000 to hold de Mol's private wealth, although he does not own the company.
It has made a number of recent media investments including the legendary British horror studio Hammer. Prior to launching RDF in 1993, Mr Frank was a BBC business reporter.
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