United Completes Divestment As Rivals Prepare For Carve-Up

United News & Media has announced that it has agreed to sell the European business of its Miller Freeman subsidiary to Reed Elsevier for £360m in cash. The group sold off the US arm of the business last week (see United Disposes Of Miller Freeman USA) and today’s sale completes the divestment programme announced in November 1999 when proposals for its merger with Carlton Communications were unveiled (see Carlton/UNM Merged Group Plans For The Future).

The divestment of its trade and business publications arm came on the day when United’s share prices hit an all-time high as its rival ITV companies prepared to divide the business amongst themselves. Since the collapse of its deal with Carlton last week (see United “In Talks” As Deal Collapses), the group has effectively put up for sale its ITV franchises – Meridian, Anglia and HTV – and is now courting bids from Granada and Carlton. Its share price is currently soaring as Lord Hollick, the group’s chief executive, ups the price of its prized TV assets.

Closing prices reached a peak of 990p yesterday. The price had slipped back this afternoon but, at 985˝p, is still a 50% increase on prices in November last year when the group first announced its intention to merge, and kick-started the battle for ITV consolidation which has now reached in its final round.

Lord Hollick is believed to be asking more than £2.2bn for the ITV licences, a figure well above recent valuations which put a price tag nearer to £1.9bn on the three southern-based TV companies. The group is believed to be accepting offers for the whole business, which includes the Express newspapers group.

Pan-European broadcaster RTL, which gains a listing on the London Stock Exchange tomorrow, is also in the frame, having a particular interest in United’s 35% stake in C5. It owns the other 65% of the channel.

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