UK's ITV shines in trading debut
 |
Story Tools
|
LONDON, England (Reuters) -- Shares of Britain's ITV began trading on Monday, valuing the broadcaster at about £5.98 billion ($10.90 billion), as investors weighed the impact of chaos at its publicly funded rival, the BBC.
Shares of ITV, Britain's largest commercial broadcaster, were changing hands at 147 pence in midday trading, up from 141-1/2 pence pre-market. The company created by the merger of Carlton and Granada controls more than half of the country's television advertising.
The advertising-free BBC was condemned in an inquiry by judge Lord Hutton into the death of Iraqi weapons specialist David Kelly, forcing the resignation of the BBC's two top officials last week.
Analysts said that a muted, less commercial BBC -- which gained audience share from ITV under departed Director General Greg Dyke -- would benefit ITV.
"It is possible to speculate, as we think the market is, about how a chastened post-Hutton BBC may help ITV's audience share by becoming more public-service oriented, and less commercial,'' said Charles Stanley Research analyst Omar Sheikh.
"Part of the reason for ITV's share losses in recent years has flowed from the BBC moving into ITV's traditional area of popular programming.''
Even as trading got underway, ITV Chief Executive Charles Allen was under pressure from investors who have doubts about his track record as CEO of Granada.
Allen's counterpart and sometime rival, Carlton's Michael Green, was forced out last year by a group of institutional investors led by Fidelity fund manager Anthony Bolton.
"At that time they actually really wanted to get Allen but they couldn't,'' said a source familiar with the situation. "But now they're determined to get him. They always wanted both. They'll never forgive him for what happened to (failed digital terrestrial network) ONdigital.''
Green was to have been chairman of ITV, a position now held on an interim basis by board member Brian Pitman.
ITV has winnowed potential candidates for the chairman position to six names, according to a source close to the company. Former investment banker John Nelson, thought by some to be a favored candidate, has removed himself from consideration, according to a report in the Financial Times.
Asked if Dyke was a potential candidate for ITV chairman, the source close to ITV said, "That's an issue for Greg Dyke to decide.''
Copyright 2004
Reuters. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
