Opposition To Take-Over Deal Withers

Following yesterday’s meeting between Peter Brooke, Heritage Secretary, and ITV companies opposition to take-overs amongst the 9 largest contractors would appear to be dwindling, with companies accounting for 70% of ITV advertising revenue now backing the move.

The main supporters prior to yesterday were Carlton, LWT, Central and Granada. They have since been joined by YTV and STV, although both would have preferred an extension of the moratorium on take-overs. STV’s proviso on acceptance was that a minimum of 4 separate ITV companies should survive.

Opponents to the deal – Anglia, HTV and Meridian – who have been accused by the others of short-termism with regard to their ‘protectionist’ attitudes, are fervently opposed to domestic take-overs – Louis Sherwood, HTV chairman, went as far as to comment that he would rather his company ‘was controlled from Europe or the US than Birmingham.’ In his opinion outside ownership would result in greater local control of regional programming. From January 1st EC companies will be able to take-over ITV companies, subject to ITC approval.

An extension to the moratorium on take-overs is unlikely due to lack of parliamentary time and its need for primary legislation.