ITV stock rises on bid rumors

Company valued at about $6 billion

By STEVE CLARKE

LONDON — The flagging stock price of ITV, Blighty’s biggest private terrestrial web, has risen on speculation that private equity groups are once again circling the broadcaster.

A report in Sunday newspaper the Observer suggested that three private equity combos are considering a bid.

Apax, Provident and KKR are all reputedly “running the numbers” on a potential bid at around 100 pence ($1.96) a share – valuing ITV at £3 billion ($6 billion).

On Monday, ITV’s stock price rose 3.2% to 79.7 pence ($1.57) following the report, which said the putative bidders could act separately or in partnership.

Quite how a bid would square with the credit crunch is not clear, but an opportunistic bid may find favor with ITV’s board, forced to watch in dismay as the stock price has plunged in recent months.

On Friday, the stock closed at 73 pence ($1.43). Not so long ago 100 pence ($1.96) would have been regarded as worrying, but uncertainty over future growth and a recent decision by the U.K. government to force paybox BSkyB to offload ITV stock has depressed the market.

U.K. TV topper Greg Dyke, who fronted a failed bid led by Apax nearly two years ago, is reportedly not involved this time.

In fact, the lack of a broadcasting heavyweight to head any bid is one big headache for those thinking of trying to buy ITV, according to the speculation.

One name being suggested, however, is former Channel 4 topper Michael Jackson, prexy of programming at IAC in the U.S.