TVS Shareholders Could Stall Deal

Convertible preference shareholders in TVS are dissatisfied with International Family Entertainment’s bid for the TV company, as they maintain that liquidation would make more financial sense in terms of returns.

The £48m bid would offer 43p cash per preference share, leaving them in a worse position than loan stock holders who would be paid out in full. If liquidation occurred they would be paid ahead of ordinary shareholders and come out with a better deal. Chiefs at TVS have pointed out that preference holders could actually come out worse than shareholders if liquidation should occur.