Consortium to ditch ITV if new bid fails

THE private equity consortium stalking ITV could abandon its bid this week if a proposed cash sweetener fails to win over investors in Britain’s biggest commercial broadcaster, it was reported yesterday.

Apax Partners, the Blackstone Group and the Investment arm of Goldman Sachs, were understood to be working on a new offer, which for the first time will include a cash alternative.

However, unless they can secure a recommendation from the broadcaster’s board, headed by chief executive Charles Allen, they will walk away, according to reports.

It is understood the terms of the new offer were certain to include a cash alternative for shareholders at a premium to ITV’s closing share price on Friday of 127.75p.

It was also reported that Mr Allen could be axed as ITV’s boss if he fails to convince shareholders this week that his strategy is working.

ITV rejected an initial approach on Wednesday saying it was not in the interests of all its shareholders. Shares in ITV surged more than 10% following the bid.

ITV, which was formed by the merger of Carlton and Granada in 2004, is currently battling to retain viewers and its share of the advertising spending pot as digital channels mushroom and the nation prepares for the analogue signal to be switched off.