Venture Capitalists Eye Carlton And Granada
Venture capitalists are believed to be circling around Carlton and Granada, assessing the prospect of making a bid for the ITV partners ahead of their planned £2.6bn merger.
It is understood that the former head of Channel Five, David Elstein, has been discussing the possibility of a take-over bid with a consortium of VC firms. However, it is unlikely that Elstein would lead a bid for the companies and he is understood to have been discussing the proposals on an advisory level.
Elstein has close ties with Apax Partners, the venture capitalist group that was recently linked to a possible £1.3 billion bid for Trinity Mirror (see Trinity Mirror Rumoured To Have Received Take-Over Bid).
Reports have linked the proposed bid with Media Ventures Investments. However, media analysts have dismissed this, claiming that the group does not have adequate funds.
The City has been rife with rumours of predatory bids for the two ITV companies and German bank WestLB has been the subject of much speculation that it is to make a bid for Carlton. This has been denied by the bank.
However, analysts have questioned the logistics of a pre-merger bid, claiming that both Carlton and Granada will be more valuable after the liberalisation of the media ownership regulations, which will clear the way for foreign bids for the merged group (see Government Finally Publishes Communications Bill).
A spokesperson for Carlton dismissed all speculation of a pre-merger bid for the group, claiming: “We have never spoken to Media Ventures Investments and are concentrating fully on our proposed merger with Granada.”
Carlton and Granada’s proposed £2.6 billion merger is expected to be referred to the Competition Commission this week by the Office Of Fair Trading (see ITV Merger Set For Competition Commission Referral).
Carlton: 020 7663 6363 www.carlton.com Granada: 020 7620 1620 www.granadamedia.com
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