The Board of ITV plc has rejected would-be suitor NTL’s bid, suggesting that the proposed offer materially undervalues ITV.
In a statement, ITV confirmed that the bid had been thoroughly analysed by its advisers and been given detailed and careful consideration, deciding unanimously to reject it, believing that whereas there was obvious appeal to ntl in gaining control of ITVs substantial and successful business, from ITVs perspective there was little, if any, strategic logic for ITV to combine with ntl. The Board also felt unable to recommend to ITVs shareholders that they should take NTL stock as part consideration for their ITV shares.
The prospects of the NTL bid succeeding had severely diminished following BSkyB’s acquisition of a 17.9 per cent stake in the broadcaster, and an indication from the UK’s Office of Fair Trading (OFT) that it would only investigate BSkyB’s actions if it receives a complaint.
Communications regulator Ofcom has invited ITV plc and BSkyB to comment on whether BSkyBs acquisition of shares in ITV represents a change of control of one or more of the licences held by ITV plc. If Ofcom were to conclude that a change of control had taken place, Ofcom would then need to review the effects - or likely effects - of such a change of control on ITVs licensed services; for example, original productions, news and current affairs programmes and regional programming.
Ofcom will be seeking submissions from ITV and BSkyB in order to consider the position. Ofcom will normally aim to decide whether there has been a change of control within six weeks.
The OFT is responsible for considering whether there is merger for competition purposes. As the sector regulator, Ofcom liaises with the OFT on its assessment of any merger in the communications sector. |
