Catalyst Entertainment’s u.k. associate The Britt Allcroft Group has ended takeover talks with Hit Entertainment, a leading u.k. kids programmer that had originally offered to pay the equivalent of $506 million, or roughly $17.50 a share, for the animation company.

When Britt rejected the original offer, saying it was too low, Hit returned with an offer of roughly $18.65 a share.

Still too low, Britt, which is reported to be looking for the equivalent of about $29 a share, ended talks with Hit on Feb. 15.

Rumors have Walt Disney International bidding for Britt, as well as newcomer itsy bitsy Entertainment Company, helmed by Ken Viselmann, who is credited for the marketing of Thomas the Tank Engine and the launch of Teletubbies in the u.s.

Sony is another possible suitor.

Catalyst ceo Charles Falzon is a managing director of Britt Allcroft.

The two companies work together on several projects – Catalyst distributes Britt Allcroft’s Thomas the Tank Engine, handles the animation on Mumfie and is set to coproduce a handful of series going forward.

Britt holds a 49% interest in Catalyst Entertainment, 25% in Catalyst Distribution and 33% in the company’s animation division Phoenix Animation.