WALT DISNEY - DISNEY BUILD ANIMATION UNIT

WALT DISNEY has made secret plans to build its own animation studio following the split from PIXAR ANIMATION.

The movie-making partnership ended last year (04) after the two giants failed to agree terms for the continuation of their marketing and distribution agreement.

Disney is planning to christen the new animation unit with TOY STORY 3 - pencilled in for a 2008 release.

However Pixar - responsible some of the most successful animation hits of all time, including both TOY STORY films, FINDING NEMO, MONSTER INC and recent blockbuster THE INCREDIBLES - is still angered Disney retains the sole rights to make the sequels to all joint-venture films.

The critically acclaimed animation company is expected to sign a new distribution deal with either WARNER BROS or TWENTIETH CENTURY FOX later this year (05).

CARS - due to hit cinemas in June (05) - is the last film to be released under their Disney-Pixar partnership.