League rejects "derisory" offer from ITV Digital

A renewed £60 million offer from ITV Digital administrators Deloitte & Touche to Nationwide League chiefs to conclude their contract has been dismissed as "derisory".
The offer is a £10 million increase on the original proposal made before the administrators were called in on March 27 – but it is a long way off the £178.5 million the league are owed for the three-year contract. The mood of the league was made known when an angry league spokesman said: "Do they think we have a mental age of three?"
The dispute is edging into the endgame as the administrators have revealed that there is no more cash left to keep company going. And the broad spectrum of opinion among media lawyers suggests that the Nationwide League would have a very tough job convincing a court that they have recourse to seek the full amount owed from ITV Digital's joint owners Granada and Carlton.
However, it seems unlikely that Carlton will be able to distance themselves completely from the Nationwide League, as the Financial Services Authority is set to consider allegations that Carlton misled investors over the state of ITV Digital's finances.
The league has cited a statement made to the London Stock Exchange on 12 February by Carlton and Granada which read: "ITV Digital's latest subscriber figures ... show growth to the end of December continuing in line with the objectives announced in April 2001."
However, it is reported that a filing on March 28 by Carlton to the US Securities and Exchange Commission (SEC) said: "Since December 2001, the operating performance of ITV Digital deteriorated as significant competition in the retail market persisted, alongside general lower levels of new digital TV subscriber sales."
This follows reports that the BBC and BSkyB had been approached by the ITC to help keep digital TV on track by saving the stricken ITV Digital.
It is understood that the ITC urged media figures to "come together" to ensure the platform remains broadcasting. However, as the administrators have now revealed that ITV Digital's cash will run out on Friday April 12 the possibility that the company can continue as a 'ongoing concern' is somewhat remote.
In any case, an ITV Digital source was unhappy at the prospect of BSkyB coming in to bail the business out.
A spokesman said that the main reason for the broadcaster's current dire straits lay with BSkyB's "uncompetitive practises" and any involvement from Sky would reward the cooperation's for such conduct, he said.
Deloitte & Touche will return to the high court on Monday April 15 to reveal their findings and proposals over the company's future.
ITV Digital, www.itv-digital.co.uk
(GMcG)