SMG unaminously rejects merger offer from UTV

by Joanne Oatts, Brand Republic 29-Aug-06, 14:20

LONDON - Scottish Media Group has confirmed it has rejected merger proposals from Northern Irish broadcaster UTV.

The merger would have combined the £175m-valued UTV with SMG, worth £221m, and given each company's shareholders 50% of the new entity.

In a statement to the London Stock Exchange, SMG said that after discussions with UTV's advisers and a subsequent revised proposal offering of an increased 52% of the proposed company to SMG shareholders, the SMG board had unanimously decided to reject the proposal.

SMG said the proposal was "unacceptable" with regard to the relative market values of SMG and UTV, SMG's prospects and the value of its portfolio of assets.

The group has explained its view to the UTV board, and has said it is open to further meetings to discuss a revised offer. Today's statement said this offer has not currently been taken up by UTV.

With the onus on UTV to make its intentions clear, a counter offer is believed to be made by Rob Woodward, a former Channel 4 commercial director linked with the company. SMG said there was no further information at this stage.

UTV's portfolio of brands includes Ulster Television and the TalkSport radio station, while SMG owns Scottish Television, Grampian Television, Virgin Radio, cinema advertising business Pearl & Dean and outdoor advertising business Primesight.

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