DreamWorks Animation in talks for "Panda" sequel

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LOS ANGELES (Reuters) - DreamWorks Animation SKG Inc Chief Executive Jeffrey Katzenberg said on Wednesday the movie studio was in talks to make a sequel to box office hit "Kung Fu Panda" and could make an announcement within two months.

"We’ve started conversations about it, and I think in the next 30 or 60 days, we’ll be able to talk completely about that," Katzenberg told Reuters, when asked about a follow-up to a film that has raked in $560 million (299 million pounds) in global ticket sales.

Set in China, "Kung Fu Panda" follows the journey of a clumsy-yet-lovable Panda named Po, voiced by Hollywood funnyman Jack Black, in his efforts to become a kung fu warrior.

Katzenberg was speaking to reporters at a screening for portions of the studio’s upcoming animated film "Madagascar: Escape 2 Africa," set for a U.S. release on November 7.

The original "Madagascar" in 2005, which tells of animals on the loose from New York’s Central Zoo, had been DreamWorks Animation’s biggest hit for a non-sequel movie with $530 million in global ticket sales until being passed by "Panda" in recent weeks.

A "Panda" sequel will likely come as good news to DreamWorks Animation investors who saw shares in the studio slump in late July after the company warned of .....continued below

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The company’s stock had traded above $30 a share in July before slipping to about $28 when the company warned on July 30. Since then, the shares have reclaimed ground and were at $30.44, off 40 cents, or 1.3 percent, in late Wednesday trade.

(Editing by Bob Tourtellotte; Editing by Braden Reddall)