Granada Move Raises Bid Speculation

Granada yesterday exercised two million of its shares in Yorkshire-Tyne Tees Television to Allquiet Investments, a deadlocked company owned by Granada and Lazard Brothers, fuelling speculation that it is setting up a stable platform from which to launch its long-rumoured takeover bid.

The shares were sold at £11.50 each to Allquiet, which was set up when Granada launched a dawn raid on Yorkshire’s shares and acquired an extra 6% in the company *Granada Raid Lifts Stake In YTTV To 20%. The warrant exercise effectively raises Granada’s stake in Yorkshire to 27%.

Some commentators were more prosaic about Granada’s motives however, saying that the move locks in around £19m of profits which would boost its financial results due out at the end of the month.

…YTTV is also considering investing in Two Way TV, an interactive TV company which is planning a national interactive television launch. Two Way allows viewers to interact with programmes via remote control and has already run a pilot scheme in Birmingham. In April Ladbroke Group invested £20m in the company *Interactive TV Gets Investment Boost and, depending on the amount Yorkshire is prepared to invest, a cash injection could provide the backing needed for a national service.

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Granada: 0161 832 7211 YTTV: 0191 261 0181