Carlton & Co Make Bid For ITN

Carlton Communications, along with LWT, Central and Reuters, have made a rescue bid for Independent Television News, following its recent round of financial difficulties.

The bid – just £400,000 at £1 a share – would buy the consortium an 80% stake in the company, with promises to invest £30m if the deal is agreed. Although the proposed takeover has been something of a surprise for the news supplier, it was set to coincide with the renewal of a £53m contract with the ITV network. The offer is dependent on the deal going ahead.

Other conditions in the agreement state that the consortium members would each hold 20% of the company with the remaining 20% being available to existing shareholders. The £30m will take the form of an initial subscription for new equity, £15m, with the other half being on call when ITN requires it.

ITN’s board is due to meet on Monday to discuss the bid, along with discussions over the ITV contract. The consortium has announced that it has no plans to restructure the management or strategy of the news company.

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