Shares in ITV rose 1.2% last week, as rumours circulated that the broadcaster could be the focus of a take-over bid by US private equity group Kohlberg Kravis Roberts.
This defied the downward market trend, which saw the FTSE 100 surrender all and more of Friday’s 2% gain after another session of unstable trading.
Rumours of the take-over were given credibility by the fact that Lord Hollick, the former chairman of United News and Media, is a partner, and it owns SBS Broadcasting, which could be merged with ITV.
ITV’s share price has dropped almost 19% since March when management rejected a 130p-a-share cash offer from another venture capital group, Apax Partners (see ITV Considers Second Bid With Added Cash Sweetener).
Analysts believe the latest rumour will increase the pressure on the broadcaster’s boss, Charles Allen, to announce an increased share buyback or a further round of cost cutting with next month’s trading update.
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