UTV is considering making a takeover bid for SMG, the owner of Scottish TV and Virgin Radio, according to The Observer.

The paper quoted a "City source" as saying: "[UTV CEO] John McCann has crunched the numbers before and if SMG's shares fall much lower he could well have a go."

UTV owns the Ulster Television franchise; a takeover of SMG would add the Scottish and Grampian TV licences (now identified solely as STV on-air) to its portfolio. ITV holds a 16.9% stake in SMG but it is unclear, given the turbulence at the top of the network at present, what the position of ITV CEO Charles Allen would be on a UTV takeover of SMG.