ITV rejects merger move from ***

[Mule]

<TABLE cellSpacing=0 cellPadding=0 width=629 border=0><TBODY><TR><TD colSpan=3>ITV rejects merger move from ***


</TD></TR><TR><TD vAlign=top width=416><!-- S BO --><!-- S IIMA --><TABLE cellSpacing=0 cellPadding=0 width=203 align=right border=0><TBODY><TR><TD> ITV says the offer undervalues the firm

</TD></TR></TBODY></TABLE><!-- E IIMA --><!-- S SF -->ITV has rejected a merger proposal from the cable firm ***, and has given details of what *** was offering.


ITV said there was little strategic logic for it to combine with ***, which offered 105p in cash, and new *** shares worth 17p, for each ITV share.

The television firm's board said it "was clear that the proposed offer materially undervalues ITV".

Satellite broadcaster BSkyB shocked the financial world on Friday by buying a 17.9% stake in ITV for £940m.
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Careful scrutiny

The *** proposal, made on 9 November, had been conditional on due diligence, on approval of the ITV Pension Scheme Trustees, and on regulatory clearance.

<!-- S IBOX --><TABLE cellSpacing=0 cellPadding=0 width=208 align=right border=0><TBODY><TR><TD width=5></TD><TD class=sibtbg> We have got rid of democracy in this country


Richard Branson

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The board of ITV met on Monday to consider the proposal, which had been "thoroughly analysed" by its advisers.

It said that after detailed and careful consideration it had unanimously decided to reject the merger.

An ITV statement said: "The board believes that whereas there is obvious appeal to *** in gaining control of ITV's substantial and successful business, from ITV's perspective there is little, if any, strategic logic for ITV to combine with ***."

Regulatory call

After BSkyB's purchase of shares, ***'s largest shareholder, Sir Richard Branson, called on the Office of Fair Trading to intervene and force BSkyB to sell its stake saying it was a "blatant attempt to distort competition".

Mr Branson attacked the power of Mr Murdoch, the owner of BSkyB, and urged the government to "stand up" to the media tycoon.

He said Mr Murdoch's media empire meant he had the power to choose the country's Prime Minister and the extent of his ownership meant "we have got rid of democracy in this country".

Virgin also vowed to take the issue up with broadcasting regulator Ofcom at its weekly meeting, arguing that Sky's links to ITV would limit competition and viewer choice.

Sir Richard became a 10.5% shareholder in *** when he sold Virgin Mobile to the firm earlier this year and *** plans to change its name to Virgin Media early next year.

But BSkyB said it had done nothing wrong. Current UK media ownership rules mean the satellite broadcaster is prevented from controlling more than 20% in ITV.


ITV is the UK's largest commercial broadcaster offering free-to-air services.
But it has been under pressure after being hit by falling ratings and declining advertising revenue. It is also without a chief executive. Earlier in the year, other private equity groups were reported to be preparing a bid for ITV..
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http://news.bbc.co.uk/1/hi/business/6169052.stm

[Mule]

Branson V Murdoch, sounds interesting

[Waka]

Branson V Murdoch, sounds interesting

Should be a great scrap...is it on Pay Per View?!

W.

[MsDG]

Ok Mr B, how come sky buying ITV is a "blatant attempt to distort competition" and the DF Triple stars (which is another TV service provider) buying ITV isn't??