ITV could be considering a bid for SMG following the company’s shares hitting a fifteen year low last week.
There have already been strong rumours that ITV is to make bids for SMG’s cinema advertising business Pearl & Dean (see
ITV Could Bid For Pearl & Dean).
Following the issuing of a profits warning last week, which the company blamed on a weak advertising market, SMG’s shares plummeted by 28% (see SMG Issues Profit Warning And Sees Shares Fall).
In September, SMG announced that it would be putting both Pearl & Dean and Primesight, its outdoor advertising business, up for sale (see SMG To Sell Pearl & Dean And Primesight).
Earlier today, it was revealed that the board of SMG had threatened to resign en masse after a dispute with one of its main shareholders, Fidelity, as to who should run the company (see ITV Welcomes Ofcom’s Public Service Proposals).
Fidelity has a 15% stake in SMG, whilst ITV, the largest investor, has a 17% stake in the company.
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