Media heavyweights may launch bid for ITV

A trio of media heavyweights including former BBC director general Greg Dyke may launch a £6bn (€8.57bn) takeover bid for ITV, it was reported today.

Mr Dyke, Lord Hollick and ex-managing director of the Daily Telegraph Stephen Grabiner could join forces in a bid consortium backed by investment groups Kohlberg Kravis Roberts and Apax Partners, the Observer cited City sources as saying.

Mr Dyke – who resigned from the BBC following the Hutton inquiry – and Mr Grabiner advise Apax, while Lord Hollick, who used to own the Anglia and Meridian ITV franchises before selling them to Granada, was recently appointed to advise US-based KKR, the report said.

The Observer quoted Lord Hollick as saying last week that buying back ITV “would have a nice ring to it. I wouldn’t rule anything out.”

No-one from Apax or KKR was available to comment. An ITV spokeswoman said: “We are focusing on growth and not thinking about other companies’ aspirations.”

ITV shares rose this week on speculation that the company, created last year from the merger of Carlton Communications and Granada, would become a takeover target.

The group said in September that half-year profits had risen 42% after advertising revenues lifted to their best level since the dotcom boom.

Chief executive Charles Allen said at the time that the newly-created company had delivered on all aspects of the merger, with its £100m (€142m) cost-saving target achieved six months early.

The long-awaited tie-up between Carlton and Granada brought together all the former ITV regional companies, except Scottish, Grampian and Ulster.

Today’s report in the Observer said KKR was keen to expand its UK media interests and Lord Hollick had already taken informal soundings from Apax, which recruited Mr Dyke in October.

While the project is at only an evaluation stage, more talks between KKR and Apax are planned in coming weeks, the report said.

It cited friends of Mr Dyke as saying the former London Weekend Television chief “can’t wait to get back to broadcasting” and being part of an Apax bid could give him the opportunity he has been awaiting.