Sharewatch: ITV Shares Dip Amid Take-Over Rumours

Carlton and Granada remained in focus yesterday on continued reports that venture capital group, Apax Partners, is forging ahead with its plans to make a bid for a merged ITV company. It is understood that the group has tried to persuade Lord Hollick to buy back into the network. The stocks were seen down 2.69% and 1.13% respectively.

Elsewhere, Telewest was seen under pressure, down 12.50%, after bondholders objected to the group’s restructuring plans, which could leave even less equity in the hands of shareholders.

Bearish sentiment was upheld by the latest advertising expenditure report from the Advertising Association, which reveals that UK advertising spend posted a 1.5% nominal growth in the first quarter of the year, although after adjusting for inflation, expenditure showed a decline of 1.5% (see War In Iraq Slows Growth In UK Adspend).

The closing prices of media company shares on Monday were: