MGN Interested in Co-Operation With STV, Not Acquisition

Following its purchase of a 14.9% stake in STV yesterday, MGN has said it is interested in co-operation with STV, thus strengthening its media grip in Scotland – not acquisition. Current TV ownership rules prevent MGN owning more than 20% of STV, but the newspaper group was claiming last night that it was not looking for control, but wanted to use STV’s programme-making skills for the cable services it plans to launch.

MGN’s first cable venture, Live TV, was announced last week. A local version of this national service is to be started in Birmingham with MIN, and there could be scope for a similar scheme in Scotland. STV’s response was wary, noting the assurance that common ownership was not necessary.

The MMC would be bound to investigate any bid by MGN.

TV SHARES SOAR ON MGN BID

Shares in the remaining “target” TV companies soared yesterday on news of the MGN bid, and remained strong in early trading this morning.

MGN bought shares in STV at 520p. The main sellers are believed to have been financial institutions, Fidelity of the US, PDFM and Mercury Asset Management.