Ulster TV Could Bid For SMG

Ulster Television is considering a £300 million bid for SMG, owner of Virgin Radio and the Grampian and Scottish ITV franchises, according to a report in the Financial Times.

UTV previously made an offer for SMG’s television assets in 2003 but was unsuccessful, whilst in 2004 a possible bid for the entire group was never followed through. It is thought that the current bid could be in the region of £300 million.

Andrew Flanagan stepped down as chief executive of SMG last week in the wake of poor share performance (see SMG’s Chief Executive Quits), which has seen the group’s share price fall from 120p in 2004 to 74p currently.

Following Falanagan’s departure, Donald Emslie, head of the group’s television division, was installed as acting chief executive.

UTV reported pre-tax profits of £19.6 million for the 2005 financial year, up 12% on 2004, while turnover was £92.7 million for 2005.

The Financial Times report also says that a group of investors is backing Rob Woodward, former commercial director of Channel 4, to develop a new strategy for SMG.

UTV: 02890 328122 www.utv.co.uk SMG: 0141 300 3000 www.smgplc.plc.uk