ITV Bid Speculation Pushes Share Price Skyward

ITV has seen its share price climb by around 8% on speculation that US media heavyweight Time Warner is preparing to make a bid for control of the company.

The takeover speculation, which has surrounded ITV since the merger of Carlton and Granada last year, fuelled an increase of 10p per share in early trading, marking an 8% hike and a 15-month high at 134.75p. However, the price has since slipped back, resting at 130.22p at 12:35.

The Mail on Sunday claims a bid of 165p per share is being prepared by Time Warner, in association with private equity group Apax and investment bank, Goldman Sachs.

Apax has been linked with an ITV takeover bid for several months, with former BBC director general, Greg Dyke, persistently at the centre of speculation, after his appointment as an advisor by the company last year (see Greg Dyke Implicated In ITV Bid Speculation).

Elsewhere, ITV recently saw its licence fees slashed by £135 million by Ofcom to less than £80 million. The cuts came as part of a review into licence fees by the watchdog, which takes into account the increasing growth of digital TV (see ITV Has Licence Fees Slashed).

The reduction in costs makes ITV a more attractive prospect for potential buyers, although reports this morning suggest that analysts are sceptical of the financial benefits of a bid.

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