UBM Set For Five Share Sell Off

United Business Media (UBM) looks set to sell its 35% stake in UK terrestrial broadcaster, Five, after intensified speculation this morning over a buyout deal from European broadcaster, RTL.

Such a deal would see RTL take complete control of the broadcaster, building on its existing 65% share of the company.

Reports suggest a price tag of £220 million has been placed on UBM’s stake in Five, with RTL keen to expand its presence in Britain through a bid for the broadcaster

There has also been speculation that RTL could make a similar approach to Flextech, Telewest’s television business, which owns Living TV, Bravo and Challenge. The cable giant’s TV business is expected to be sold off following the merger of Telewest with ntl in order to streamline the company’s interests (see Viacom In Frame For Flextech Sale).

RTL’s parent company, Bertelsmann, is believed to have set aside around £690 million for investment and acquisitions over the coming year, signaling the company’s interest in diversifying its interests.

The German media group has made no secret of its intentions towards Five, with movements towards an increase of its stake in the company stretching back as far as May 2004. Last year saw the firm hire investment bank JP Morgan as it considered the possibility of increasing its shareholding the broadcaster (see RTL Hires JP Morgan To Help Boost Stake In Five).

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