ITV giants Carlton and Granada have rebuffed advances from two US media groups that have expressed an interest in buying a single ITV group. According to reports, Viacom and Saban Capital Group have both indicated that they might bid for ITV if Carlton and Granada’s planned £4 billion merger gets the go-ahead.
Reports from last weekend’s Royal Television Society conference quote Carlton chief executive, Michael Green, as saying that he does not think such a deal is ‘even on the cards’. Granada’s chief, Charles Allen, concurred, claiming that shareholders will want to realise their share of value generated by the merger, rather than give it away.
US oil billionaire Haim Saban has been in the picture for some time now, with earlier reports claiming that a takeover plan has already been drawn up, with private equity group Apax Partners as a joint backer (see US Investor Linked With ITV Acquisition). Saban has recently acquired ProSiebenSat1, Germany’s largest broadcaster, from KirchMedia for €1.3 billion (see KirchMedia Creditors Accept Saban’s €1.3bn ProSieben Offer).
The Government’s Communications Act will open the way for non-EU companies to bid for ITV and Five in the UK, although any such acquisition would have to pass a public interest test before it would be permitted (see Parliament Finally Green Lights Communications Act).
ITV’s merger is currently being considered by the Department of Trade and Industry. Patricia Hewitt, the trade and industry secretary, says its verdict will be delivered in the week beginning 6 October.
