Warner Bros has beaten off competition from Columbia TriStar, 20th Century Fox and Lumiere Brasil to acquire Brazilian rights to local children's feature Xuxa Pop Star, the third film in domestic TV star Xuxa's franchise.

The last Xuxa film - Xuxa Wiggles (Xuxa Requebra) - distributed by 20th Century Fox through its joint venture with Warner, racked up more than two million admissions when it was released during the Brazilian summer, beating other children's films released at the same time including Pokemon and Toy Story 2. The sequel is being lined up for the 2001 summer vacation when it is unlikely to face any local competition.

Warner is boarding the film as an equity partner, taking a 25% stake and investing $877,000 (Real1.6m) through tax incentives incorporated in Brazil's Audiovisual Law. It will advance $438,000 (Real800,000) of this sum to enable the film to start production.

Producer Diller Trindade closed the agreement with Warner Bros vice president for Latin America, Redo Farah.

Xuxa gained a following through a daily morning TV entertainment programme for children. Xuxa Pop Star, to be directed by Paulo Sergio Almeida, is set in the world of modelling, a concept that is sure to appeal to young Brazilians.