ITV has rejected NTL’s merger bid, saying that there is “little, if any, strategic logic for ITV to combine with NTL.”
The rejection by ITV comes after BSkyB acquired a 17.9% stake in the broadcaster for £940 million on Friday (see
ITV Share Price Falls After BSkyB Acquires Stake).
The NTL bid offered 105p cash and new NTL shares worth 17p at the close of business on November 9, meaning that the deal was valued at 122p per share.
BSkyB paid 135p per share for the 17.9% stake in ITV which it acquired on Friday.
In a statement released today, ITV said: “The board of ITV met yesterday to consider this proposal, which had been thoroughly analysed by ITV’s advisers. The board gave it detailed and careful consideration and unanimously decided to reject it.
“The board believes that whereas there is obvious appeal to NTL in gaining control of ITV’s substantial and successful business, from ITV’s perspective there is little, if any, strategic logic for ITV to combine with NTL.
“The board feels unable to recommend to ITV’s shareholders that they should take NTL stock as part consideration for their ITV shares the board is clear that the proposed offer materially undervalues ITV.
“For these reasons, the board of ITV cannot recommend the proposal to its shareholders and has accordingly rejected it.
“In accordance with the requirements of The Takeover Code, the board of ITV wishes to make clear that this statement is not being made with the agreement or approval of NTL. There can be no certainty that an offer will be made nor as to the terms on which any offer might be made.”
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