Granada To Bid For YTT

Rumours have again resurfaced that Granada is about to mount a takeover bid for Yorkshire Tyne Tees Television. Granada already owns 20% of the ITV company and it is believed that as soon as the Broadcasting Bill alters the rules on media ownership at the end of the month, a full takeover will take place. As reported in Newsline (14/06) shares in YTT have been rocketing on the back of such speculation.

At present, media groups are barred from owning more then two ITV regions and cannot hold more than 20% in a third. As Granada already owns LWT and controls 20% of YTT a full takeover cannot technically take place. However, one way that Granada could increase its stake in YTT before the Broadcasting Bill becomes law is by ‘warehousing’ shares in a deadlocked company. This is what happened in February when Granada increased its stake in YTT by buying an extra 4% of the company (taking its overall stake to 24%) and holding the shares in Allquiet Investments (Newsline 16/02). Granada this morning would not comment on any takeover speculation.