ITV has again been linked with SMG’s cinema advertising business Pearl & Dean, following SMG’s announcement that it would be selling both Pearl & Dean and Primesight, its outdoor advertising business.
ITV was first linked with Pearl & Dean at the end of September (see
ITV Could Bid For Pearl & Dean), following the sale announcement from SMG.
If ITV were to acquire Pearl & Dean the deal would most likely have to be referred to the competition authorities, owing to the broadcaster’s ownership of Carlton Screen Advertising, which has a market share of over 75%.
A report in today’s Times says that some leading SMG shareholders want Fru Hazlitt to replace former chief executive Andrew Flanagan.
On Friday, SMG saw its shares fall by 28% after issuing a profit warning owing to a weak cinema and TV advertising market (see SMG Issues Profit Warning And Sees Shares Fall).
UTV approached SMG with a merger proposal in August which was rejected by shareholders. The city code on takeovers and mergers means that UTV cannot make another bid unless a third party becomes involved (see UTV Withdraws SMG Merger Proposal).
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