Cable company, Comcast, is reportedly considering withdrawing its $58bn (£33bn) hostile takeover bid for Walt Disney as hopes fade it will be able to force Disney to the negotiating table.
According to the Financial Times, Comcast executives are debating whether to drop the all-share offer due to widespread scepticism from investors that the offer will succeed.
However, no final decision has been made on the matter and people close to the company have said Comcast may decide to leave its bid on the table indefinitely.
The cable group is due to update investors on its performance on Wednesday when it reports its first-quarter results.
Meanwhile, Disney directors are due to meet today to debate a possible succession plan for chief executive, Michael Eisner, whose contract expires in 2006.
Last month saw an unprecedented shareholder revolt at Disney’s annual meeting due to corporate governance issues and what shareholders saw as Disney’s underperformance.
Following this meeting, Eisner agreed to give up his role as Disney chair as shareholders representing 45 per cent of the company’s stock had withheld their votes from his re-election to the board.
