Sharewatch: SMG In Focus Following Sell-Off Rumours

SMG, the Scottish media conglomerate, was seen in focus yesterday with shares dropping by 0.45% following reports that it is sounding out potential buyers for its Virgin radio station, which it hopes to off-load for around £130 million.

Emap rose by 0.13% to close as 748p as speculation suggested the cross-media group is interested in acquiring Virgin Radio to grow its radio business, which already includes Kiss 100 FM in London and a range of digital stations such as Kerrang! and Smash Hits (see Virgin Radio Could Be Sold For £130 Million).

Meanwhile, ITV climbed 0.22% higher to finish at 115p despite news that it could face a deficit of around £100 million in revenue as big-brand advertisers seek to negotiate more competitive deals following the broadcaster’s recent decline in audience share (see Dip In Share Leaves ITV Facing Revenue Shortfall).

The FTSE 100 closed 0.8% higher yesterday at 4,491,6, its highest level in a month, with financial stocks the main contributors. The mid-cap FTSE 250 finished up 0.5% at 6,128.4. Share trading volume was £2.2 billion.

The closing prices of media company shares on Monday were:

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