Sharewatch: Daily Mail Dips On Ofcom Merger Proposals

Daily Mail & General Trust was seen in the spotlight yesterday, down 0.15% following news that it and other potential bidders for the Daily Telegraph could face an extensive public interest test from media regulator, Ofcom.

Earlier this week the communications regulator set out proposals for new guidelines that could hamper Government plans to make media mergers easier in the newly deregulated marketplace (see New Ofcom Guidelines Could Tie-Up Major Media Mergers).

Carlton Communications was also seen in focus ahead of its forthcoming merger, with reports suggesting that chief executive of its content division, Rupert Dilnott-Cooper, is leaving the network because his role will not exist within ITV plc. The broadcasters saw shares remain stable at £2.34.

The best performance in yesterday’s media market came from Johnston Press, which saw shares rise by 1.28%. The regional newspaper publisher recently announced that advertising revenues had surpassed expectations in the second half of the year, with growth of 4.9% achieved in the five months to 30 November (see Johnston Press Sees Ad Revenues Ahead Of Expectations).

Broader market sentiment was flat yesterday as further dollar weakness caused a number of heavy stocks to fall. The FTSE 100 failed to record a twelfth straight gain and closed 0.2% lower at 4,505.2.

The closing prices of media company shares on Tuesday were: