MGM, the movie studio behind the James Bond films and classics including Gone With The Wind, Ben Hur and The Wizard of Oz, has reportedly been put up for sale with a price tag in the region of $7bn (£4.8bn).

According to reports in the US, the studio has mandated investment bank Goldman Sachs to find a buyer.

MGM shares rose 11% on Wall Street to $22 in response to the reports, forcing the movie studio to issue a statement. The company said it was "evaluating business combination opportunities" but stressed a deal has not yet been done.

A spokeswoman for MGM declined to comment further on what shape a deal might take but said a sale of the company was not necessarily the only option being considered.

Billionaire Kirk Kerkorian, who controls MGM with an 80% stake, is said to be seeking bids of $30 a share. Mr Kerkorian bought the studio for the third time when he led the $1.3bn buyout from investment bank Crédit Lyonnais.

Speculation on potential buyers reads like a who's who list of the leading media groups in the world - Viacom, Walt Disney, Vivendi Universal, News Corporation and AOL Time Warner.

A buyer would be particularly interested in the valuable film library owned by MGM which also includes Dr Zhivago, Mutiny on the Bounty and the stable of MGM musicals. The studio's latest release is the remake of the 1970s classic sci-fi Rollerball.

MGM has an illustrious history. It was formed in 1924 through the merger of Metro Pictures, Goldwyn Pictures and Louis B Mayer Productions.

Today, it also includes United Artists Films, MGM Distribution and television production and distribution.

Mr Kerkorian first acquired the studio in 1969 and has since diversified MGM's interests. He has bought the Mirage Resort hotels in Las Vegas, Orion Pictures, the film library of PolyGram Pictures and a 20% stake in four cable television channels.