Pension Fears Call Halt To ITV Takeover Bid

ITV saw its share price plummet this morning, following reports that a takeover bid for the company by Apax and Time Warner had been abandoned following concerns over the company’s pension deficit.

A bid for control of ITV from private equity firm, Apax, and American media giant, Time Warner, has long been expected, following rumours earlier this month which pushed ITV’s shares to a 15-month high of 134žp (see ITV Bid Speculation Pushes Share Price Skyward).

However, the bid is now believed to have been scrapped, with the potential bidders shying away from the firm, which has a pension deficit of £586 million.

Shares in ITV fell by 2.39% this morning, resting at 122žp following the reports.

It had been believed that a bid for control of ITV would materialise in the near future, especially given the company’s much reduced licence fees, slashed by £135 million by Ofcom to less than £80 million last month (see ITV Has Licence Fees Slashed).

The rumoured takeover deal by Apax was believed to have involved former BBC director general, Greg Dyke, who joined the private equity firm as an advisor last year. Many believed that Dyke was set for a return to broadcasting, taking over from Charles Allen as chief executive of ITV, should a bid by Apax have been successful (see Greg Dyke Implicated In ITV Bid Speculation).

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