Carlton And Maiden Deny Takeover Talks

Both Carlton Communications and Maiden Group have denied that they are in takeover talks after a report in last weekend’s Sunday Telegraph claimed that Carlton had approached the outdoor advertising group with a possible merger offer of £170 million.

A spokesperson for Carlton told Newsline that the company had made no approaches to Maiden and he reiterated Maiden’s statement to Reuters that the story has no basis at all. Francis Goodwin, managing director of Maiden, said: “We are not in conversation with Carlton and we are not for sale.”

The rumours may have been sparked by the acquisition of a number of outdoor companies by media groups recently. Scottish Media Group bought the Scottish outdoor advertising companies Baillie Advertising and Baillie Lite in March (see Scottish Media Group Expands Outdoor Portfolio) and prior to this acquired Postermobile for £35 million in January (see Scottish Media Moves Into Outdoor With £35m Primesight Bid). Scottish Radio bought Trainer Outdoor Advertising for £27.5 million in March (see Scottish Radio Moves Into Outdoor With £27.5m Trainer Acquisition).

Outdoor advertising is enjoying a period of strong revenue growth. According to the Advertising Association, ad expenditure on outdoor grew by 7.8% between 1997 and 1998 (see TDI Expects To Buck Advertising Downturn).

At the close of trading yesterday, Maiden shares were up 26˝p at 404p; Carlton finished up 3p at 630p.

Carlton Communications: 0171 663 6363 Maiden Group: 0171 838 4000