ITV rejects £1.5 billion takeover bid

ITV has turned down a £1.5 billion takeover bid from a consortium of venture capitalists, the broadcaster confirmed today.

The proposals would have seen the group - comprising Apax Partners, The Blackstone Group and Goldman Sachs - take a controlling stake in ITV, injecting £1.5 billion into the company and returning up to £3.55 billion (86p per share) to shareholders. Former BBC Director-General Greg Dyke advised Apax on the deal and was expected to be given a large role in the newly-restructured ITV.

In a statement, the ITV board - headed by chief executive Charles Allen - said: "The board carefully examined this proposal in the context of the company's own strategic plans and was concerned that, inter alia, shareholders who did not wish to retain their shares in this highly leveraged structure would not have been assured of receiving a cash price for their shares at an appropriate premium to reflect the change of control envisaged by the proposal. The board therefore unanimously concluded that the proposal could not be in the best interests of all shareholders and accordingly rejected it."

Shares rose 10% Wednesday morning on news of the possible deal, valuing the company at £5.24 billion.