ITV mulls bid for media firm SMG

Well somebody is going to buy it some time or later.

http://business.scotsman.com/latest.cfm?id=1600952006

Bring back the UTV offer!

I really hope SMG don't accept an offer!
I don't want ITV1 Scotland yet.

I hope the bid is called off as well, I don't want Scotland to suffer as well. If it isn't then pratically all of Britain will be covered by ITV1.

might the scottish excitive step in to stop this

Er.. why? Broadcasting isn't even in the Scottish Execufarce's remit.

I would view such a move as extremely unlikely anytime in the future because of:-

1. If SMG haven't completed the disposal of Pearl & Dean, a quick sale, on the terms of the buyer would be forced - the Competition Commission will not allow them to control virtually 100% of the cinema advertising market. This would mean realising less for the asset than they would accrue in the open market.

2. True, the share price is low - but the debt-to-equity ratio is now geared virtually 1:1. This would effectively mean ITV plc paying twice for the same business - and they have enough debt problems of their own, thank you very much

3. The pension fund has a reported deficit of £36 million - most of it connected to the TV businesses by all accounts. ITV plc once again would have to plug the gap - and they, too have pension funding problems of their own.....

4. And, dont forget, if ITV plc do bid, the shares will inevitably rise higher...

It is of course difficult to determine the validity of such reports - this might be true, or the intention may well be to ramp the share price up. All will be revealed....

I thought the understanding of the 'Carlton'–'Granada' merger was on the understanding that they wouldn't take over any more franchises? I think I got that off 'Wikipedia', so I know not to take it as the gospel-truth, but I personally think 'Wikipedia' is very reliable. If this was true, wouldn't OFCOM stop a take-over?