Media
NTL will need to raise £5 billion in cash in order to make a serious bid for broadcaster ITV, analysts say.
As it is a Nasdaq-listed company, NTL's US shares are unlikely to be attractive to ITV and its shareholders, which already has £1 billion of debt. Currently NTL has £6 billion of debt following the Telewest and Virgin Mobile mergers, but this deal could put the cable company even further in the red.
ITV chairman Sir Peter Burt turned away a 130p a share offer from the private equity house Apax earlier this year, which some suggest is the bench mark for any further offer.
Other reports this morning suggest that former Channel 4 boss Michael Jackson has been lined up by NTL to run ITV, were the company to acquire the broadcaster.
Jackson, who is currently the programming president of US internet firm InterActive Corporation, has already been mentioned as a candidate for the ITV chief executive role which remains unfilled, and with him on board and the cash available, NTL would have a more credible case.
NTL chairman Jim Mooney is expected to meet with Sir Peter this week to begin discussing the idea with the major ITV shareholders.
Fidelity, the fund management group which up until last week held 14% of ITV and 6% of NTL, made an announcement to the stock exchange on Friday that indicated that it had reduced its holding to just 11.5% of ITV.
Sir Richard Branson's Virgin group, the largest single shareholder in NTL with 11%, is reported to be "backing the deal enthusiastically".
As it is a Nasdaq-listed company, NTL's US shares are unlikely to be attractive to ITV and its shareholders, which already has £1 billion of debt. Currently NTL has £6 billion of debt following the Telewest and Virgin Mobile mergers, but this deal could put the cable company even further in the red.
ITV chairman Sir Peter Burt turned away a 130p a share offer from the private equity house Apax earlier this year, which some suggest is the bench mark for any further offer.
Other reports this morning suggest that former Channel 4 boss Michael Jackson has been lined up by NTL to run ITV, were the company to acquire the broadcaster.
Jackson, who is currently the programming president of US internet firm InterActive Corporation, has already been mentioned as a candidate for the ITV chief executive role which remains unfilled, and with him on board and the cash available, NTL would have a more credible case.
NTL chairman Jim Mooney is expected to meet with Sir Peter this week to begin discussing the idea with the major ITV shareholders.
Fidelity, the fund management group which up until last week held 14% of ITV and 6% of NTL, made an announcement to the stock exchange on Friday that indicated that it had reduced its holding to just 11.5% of ITV.
Sir Richard Branson's Virgin group, the largest single shareholder in NTL with 11%, is reported to be "backing the deal enthusiastically".
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