Liberty Global downplays talk of takeover bid for ITV
Liberty Global, a UK-based cable company, is trying to downplay expectations that it will make a takeover bid for ITV, the Financial Times reported. Liberty Global chief executive Mike Fries said recently at an investor conference that the company’s acquisition of a 6.4% stake in ITV in July does not signify anything with regards to the listed UK-based television broadcaster, according to the newspaper.
The item also noted that Liberty Global’s strategy chief Jim Ryan also downplayed speculation that the group will acquire content providers, describing such deals as “ancillary” to Liberty’s primary cable business.
Some Liberty Global investors have in private voiced concerns that a potential takeover of ITV would be unnecessary and expensive, the item said, citing a person familiar with Liberty’s thinking.
However, an analyst cited by the report believed that Liberty’s downplaying of the speculation was very “rational” no matter what its strategy is, as a company should avoid adding to speculation regarding a specific acquisition.
Another analyst cited by the report expressed the opinion that Liberty’s acquisition of its ITV stake was “opportunistic.” The analyst thought that Liberty has no plans for a takeover of ITV in the near future.
As reported, the entrepreneur John Malone is the controlling shareholder in Liberty Global.
ITV’s market capitalisation stood at GBP 8.61bn (EUR 10.97bn) at the close of trading in London yesterday, 18 September.
Source Financial Times