BBC says still talking to Woolworths on 2Entertain

LONDON (Reuters) - The British Broadcasting Corporation (BBC) said it was still in discussions with Woolworths Group regarding the purchase of the collapsed retail group's 40 percent stake in DVD publishing business 2Entertain.

"We're still in talks with Woolworths and hope for a good conclusion," said a spokeswoman for BBC Worldwide, the broadcaster's commercial arm, which owns 60 percent of 2Entertain.

She said a report in The Times which said Woolworths' stake in 2Entertain was likely to be in administration by the end of the week was "categorically untrue."

"Our view is it is not going to go into administration, you can't put a stake into administration," she said.

"Even if the Woolworths Group went into administration, the 2Entertain business is still highly profitable and would not in itself be put into administration," she added.

Woolworths' 815-store retail business and its EUK entertainment distribution business was placed into administration last week, a form of creditor protection.

However, Woolworths Group and its 2Entertain stake were not put into administration.

Wednesday's Times said the BBC is trying to cut its initial 100 million pounds offer to take full control of 2Entertain.

The BBC spokeswoman declined to comment on this.