A report in the U.K.'s Sunday Times has suggested that Chorion, owned by private equity company 3i Group, is looking to launch a bid in January for HIT Entertainment and has shortlisted three private equity firms to fund the move.

The newspaper report was unsourced. HIT is being prepared for auction by its owner Apax partners with a price tag of up to £1 billion ($1.6 billion). Another U.K. newspaper The Daily Mail suggested that Chorion's chairman Lord Alli has been forced to seek outside help after 3i apparently dismissed his expansion plans.