ITV has rejected the second bid by Greg Dyke’s investment consortium, stating that the offer does not represent a good deal for current share holders.
In addition, ITV stated that “this high level of debt would have enabled the Consortium to buy, for less than GBP 1.3 billion, a 48% stake in a company which, immediately prior to the leak of the Consortium’s approach, had a market capitalisation of GBP 4.8 billion.”
The new offer gave share holders a cash alternative of 40p per share on top of the 86p in cash originally offered last week (see ITV Receives Take-Over Bid).
Those wishing to offload their stake in the company would have received the additional payment, giving a total price of 126p per share – slightly above the company’s closing price of 125p last night.
The consortium, comprising Apax Partners, Blackstone and Goldman Sachs, had intended to install former BBC director general Greg Dyke in the top job at ITV, and had also mooted its intention to merge the company with Five (see ITV Bid Consortium Plans Merger With Five).