ITV stock gains on possible takeover

ITV shares made further heavy gains yesterday after reports said former BBC director general Greg Dyke may launch a £6 billion takeover bid.

Shares in the company have lifted 10% since last Wednesday - including 3% yesterday - amid speculation a bid could be on the cards.

It is understood media heavyweights Mr Dyke, Clive Hollick and former managing director of the Daily Telegraph Stephen Grabiner could join forces in a consortium backed by investment groups Kohlberg Kravis Roberts (KKR) and Apax Partners.

ITV, created from the merger of Carlton Communications and Granada last year, recently saw half-year profits rise 42% after advertising revenues lifted.

Mr Hollick, who used to own the Anglia and Meridian ITV franchises before selling them to Granada, was quoted as saying that buying the group back “would have a nice ring to it” and that he would not rule anything out.

Jeremy Batstone, an analyst at stockbroker Charles Stanley, said he thought a bid for ITV was a “distinct possibility.”