UTV in SMG merger

Virgin Radio owner SMG said today that it had rejected two merger proposals from rival Ulster Television but invited the talkSport owner to come back with a better offer.
SMG said the two proposals were "unacceptable" as the first only gave its shareholders a 50% stake in the new company and the second a slightly better 52% stake - even though SMG has a market value nearly £60 million higher than UTV.

It is thought that SMG saw the offers as attempted takeovers on the cheap but analysts believe that it could be willing to enter discussions if UTV offered its shareholders around 55% of the combined company.

UTV, has dropped plans to merge with SMG after the latter rejected its approach.


http://news.bbc.co.uk/1/hi/business/5364182.stm

Given that SMG has put Pearl and Dean and its outdoor advertising arm up for sale - presumably to offer a sweetener to their shareholders - I find this decision by UTV to be most surprising in the extreme. SMG's share price collapsed on the news - and it leaves open the possibility that someone else will steam in with a takeover bid.

Thankfully, we can rule out ITVplc...

still, no where has it been said SMG would try and buy UTV,

so that could still happen out of the blue.