MAI Merger Leads To Increased Speculation

There has been increased speculation that Carlton may make a hostile takeover bid for MAI after Thursday’s merger between MAI and United News and Media.

Carlton Communications, long-rumoured to be on the lookout for a takeover, is believed to be facing pressure from the City to launch a bid due to the MAI merger lacking industrial logic. The merger has been seen as a defensive move to fend off Carlton, but analysts believe that Carlton would make a much better partner for MAI.

An MAI purchase would bring two more licences to Carlton – Meridian and Anglia which command 5.6% of network viewing. Carlton, which controls 9.5%, would then have around 15% of the ITV network.

If Carlton does not move on MAI, analysts forecasts a takeover of HTV, which is valued at £310m. There have been informal contacts sparked by Carlton’s interests in HTV’s film, TV rights and cable interests. It is also believed that the diverse holdings of the new merger make it an ideal candidate for a break-up. MAI has a variety of money and securities broking companies that could be sold, while United has a large newspaper and magazine publishing business.

The latter especially is the focus of takeover rumours. Both Midland Independent Newspapers and Newsquest (the new company formed from Reed Regional Newspapers), are thought to have their eye on United Provincial Newspapers.

MAI: 0171 800 1900

United News and Media: 0171 921 5000