City Boost For Pearson And MAI After Channel 5 News

Friday’s announcement that Channel 5 Broadcasting was the successful bidder for Channel 5 meant shares in Pearson and MAI, both members of the successful consortium rose by the end of trading. Pearson’s shares were up by 10 to 635, and MAI’s were up by 11 to 323. This morning, at 8:30, there was no change in Pearson’s shares, but MAI’s were up by a further 5 to 328.

The news also caused companies with a stake in the losing consortiums to fall. The biggest loser was BSkyB, backer of the New Century TV bid, which dropped 15; there was a double blow for BSkyB with the announcement from the OFT that it had lost exclusive rights to the Disney Channel. Granada, also part of the unsuccessful New Century TV bid fell by 5 to 670. However, following Friday’s initial reaction both Granada and BSkyB have picked up this morning, by 3p and 2p respectively.

… UKTV and Virgin are believed to be consulting lawyers to see whether the decision could be challenged in the courts. Virgin has said it will issue a full statement on the bid today …