UTV Withdraws SMG Merger Proposal

UTV has announced that it no longer intends to pursue its merger proposal with SMG, owner of Virgin Radio.

UTV said that in reaching its decision the board took into account the interim results of SMG, announced on 13 September 2006, and the ongoing weakness in the advertising market faced by the ITV network.

The city code on takeovers and mergers means that UTV cannot announce an offer or possible offer for SMG within six months of today’s date “unless there is a material change of circumstances or there has occurred an event which UTV has specified in today’s statement as an event which would enable the statement to be put aside.”

However, UTV said that it reserves the right to announce an offer for SMG if the board recommends it or if there is an announcement by a third party of an offer for SMG.

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