ITV Confirms NTL Merger Interest

In response to speculation, ITV has confirmed that it has recently received an expression of interest in holding discussions about a possible merger with NTL.
While confirming that no meeting had been held nor proposal sent ITV said in a press statement: "There can be no certainty that any compelling construct will be forthcoming, still less that any merger or takeover will result."
NTL confirmed that an initial conversation with ITV had been scheduled and said in a press statement: "This process is at a very preliminary stage and there is no assurance that these discussions will lead to any offer being made for ITV."
News sources speculate that a potential merger could raise the prospect of a �9 billion media group to take on BSkyB. The move propelled ITV's shares up more than 6 percent to a six-month high of 112p.
A full merger would bring together ITV's channels and the Friends Reunited website with NTL'scable TV, broadband, fixed line telephony and Virgin mobile. It would combine ITV's broadcast and production business with the distribution power of NTL, which is rebranding early next year as Virgin Media.
Industry analyst Jesper Jensen is reported as saying: "We would be surprised to see a friendly takeover bid from NTL Telewest at this stage, as the integration of the two companies is still not complete and neither is the recent acquisition of Virgin Mobile."
It has been pointed out by other analysts that a merger between NTL's pay-TV model and ITV's heritage as free-to-air, advertising-funded broadcaster would be not be logical.
In ITV's search for a Chief Executive it is thought Stephen Carter, former Managing Director of NTL, is thought to have made the shortlist this week.
(DS/CD)