Bidders for ITV present alternative offer |
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Published
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Fri, 31 Mar 2006 09:15
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LONDON: A consortium comprising private equity groups has submitted a revised bid for British broadcaster ITV Plc., with provisions to offer cash to investors who would want to exit the company, according to news reports.
ITV had rejected last week an offer by Apax Partners, Blackstone Group and the private equity arm of Goldman Sachs to invest 1.3 billion pounds in equity in exchange for a 48 per cent holding in the company. The proposal would have seen the company returning 86 pence per share, totalling 3.5 billion pounds, to shareholders by taking on debt.
According to the reports, the revised proposal includes a cash component of 40 pence per share. ITV's board is said to be considering the proposal. Sources indicated that JP Morgan and Goldman Sachs are financing the deal.
ITV is reported to have told the consortium that it should present an option for cash exit for shareholders, who would want to divest their stakes in the company.
Besides injecting 1.3 billion pounds in equity, the consortium is also understood to have agreed to increase ITV's debt to 3.5 billion pounds,.
According to reports, the consortium is a front for Greg Dyke, former director general of BBC, and who is angling to be in control at ITV. There are also reports that once ITV comes under the consortium's control, Dyke could force a merger with rival Channel Five, though there are questions about regulatory approval for the merged entity.
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