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Liberty Global Bid for ITV ’Very Possible:’ Panmure’s DeGroote 2013-11-22 09:36:30.788 GMT
By Blanche Gatt Nov. 22 (Bloomberg) -- Any bid for ITV would have to be ~300p to have any chance of success, Alex DeGroote, analyst at Panmure Gordon says in telephone interview. * That’s ~50% premium, DeGroote says * NOTE yday: WSJ says ITV could become M&A target for Liberty Global in move to expand into content production * DeGroote says ITV is “attractive and scarce asset,” bid from Liberty a “very possible” scenario * Says 2 things make it likely: * 1st is ITV’s “incredibly attractive” content production unit, which is saw rev. growth of 11% and programing that generates “big audiences” * 2nd is exposure to recovering U.K. economy through U.K.’s largest mass-mkt advertising platform * Reiterates strong buy, PT 270p; sees ITV as “critically undervalued” * Shares rise as much as 1.8% today, ~10p below 1-year high of 195.1p on Oct. 17 * ITV has 12 buys, 13 holds, 3 sells; avg. PT 199p implies upside of 7.9%; up 81% YTD: Bloomberg data * Trading on 15x next year’s earnings vs 15.7x for the Stoxx 600 Media index * NOTE yday: ITV Critically Undervalued, Offers 50% Upside; Panmure Lifts PT * NOTE Nov. 20: ITV Chief Says Lost Champions League Won’t Affect Advertising * NOTE Nov. 19: ITV Down; Exane Sees Possible Profit-Taking, Says Chance to Buy
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To contact the reporter on this story: Blanche Gatt in London at +44-20-7392-0351 or bgatt@bloomberg.net
To contact the editor responsible for this story: James Ludden at +44-20-7673-2645 or jludden@bloomberg.net