BRITAIN's United News & Media plc yesterday agreed to buy the rest of Welsh and west of England broadcaster HTV Group in a deal valuing the group at £371.7 million sterling.
Amid increasing consolidation in the UK commercial television sector, United News offered 420p per share for HTV in a bid agreed by HTV directors and assumed control immediately, as it took 51 per cent of the company.
United News, which already held almost 30 per cent of HTV, is one of Britain's three largest commercial television operators. It also owns Express News papers, regional newspapers and business services.
The move might disappoint rebel institutional shareholders in Yorkshire Tyne Tees Television Holdings plc, who are not supporting a recommended £711 million bid from media group Granada Group in the hope of a higher counter offer. United News had been rumoured to be amongst possible bidders.
The HIV bid price represents a premium of around 27 per cent to the group's closing price on June 6th.
While the deal will be broadly earnings neutral in its first financial year, United said it expected to reap "substantial savings" from merging the two television business.
HTV's shares, which fell to only 14p each in 1992, shot up 84.5p to close at 415p, just below the offer price. United News saw its stock end 10.5p lower at 713.5p.
