ITV Rejects Merger Bid from NTL

LONDON, November 21: ITV
has turned down a merger bid from NTL, which was made before BSkyB acquired a
17.9-percent stake in ITV last Friday, according to reports.

The ITV board said it
rejected the cash and share merger proposal from NTL because it “materially
undervalues” the commercial broadcaster. It also said it saw no strategic value
in such a union.

Many observers see
BSkyB’s unexpected acquisition of a stake in ITV as a move to thwart NTL’s
proposed takeover. An NTL/ITV combination would create a large cable and
broadcast media player controlled by Richard Branson, who would have been in a
better position to compete against the BSkyB, which is controlled by Rupert
Murdoch.