Office Of Fair Trading Could Intervene In NTL/ITV Merger

NTL’s proposed merger with ITV could come under the scrutiny of the Office of Fair Trading because of NTL’s 50% stake in digital pay-TV provider UKTV.

Flextech, which is owned by NTL, could be required to sell its stake in UKTV, which is a joint 50/50 venture with BBC Worldwide if the merger went ahead, according to a report in the Telegraph.

The Telegraph says that the Office of Fair Trading could intervene in the merger deal owing to the huge back catalogue the new company would possess.

If the OFT decides that competition would be lessened by a merger, then it could make NTL sell its interest in UKTV before any deal is completed.

The Telegraph says that if the stake is sold there is a possibility that the BBC could buy the stake, owing to the agreement it currently has with Flextech.

Meanwhile, reports in the trade press suggest that the advertising and media industry would move to block any attempt to merge the sales operations of ITV and NTL as the combined entity would control more than 50% of the £3 billion TV advertising market.

NTL announced last week that it had approached ITV about a possible “combination transaction” which would see the companies merge (see NTL Telewest Could Merge With ITV).

ITV: 020 7843 8000 www.itv.com NTL: 01256 752000 www.ntl.com