Carlton set to grab SMG stake
ITV broadcaster Carlton is preparing to make an offer for Telewest's stake in SMG as a prelude to acquiring the Scottish media group's ITV franchises.
Telewest has a 17% stake in SMG worth £55m while Carlton's ITV rival Granada has a similar holding.
SMG owns Virgin Radio, the Herald newspapers and a 20% stake in breakfast TV franchise GMTV, as well as Scottish TV and Grampian.
Under broadcasting rules, only Carlton has sufficient leeway to acquire SMG's TV franchises without breaching regulations.
Carlton executives have said they are prepared to make an offer for Telewest's stake. 'If the opportunity arose on attractive terms, we would do it,' said one.
Charles Burdick, who replaced Adam Singer last week as Telewest's chief executive, has said that he does not regard the troubled cable company's stake in SMG as core to its operations. He said investors 'should not be surprised' if it sold its stake. The company faces painful restructuring to tackle debts of more than £5.3bn. Singer will step down as a director of SMG this week.
Carlton, maker of popular programmes such as Survivor, plans to concentrate on revitalising its main TV business after the collapse of ITV Digital, its joint venture with Granada, and its failure to win digital terrestrial broadcasting licences.
