Shares in ITV rose 2.2 per cent this morning following a report in the Financial Timesthat RTL Group and some private equity backers were considering a bid.
The newspaper said the group was working on a possible £5 billion-plus offer for ITV, Britain's largest commercial broadcaster.
RTL, Europe's biggest commercial broadcaster, and ITV declined to comment on the report.
The shares opened 2.2 per cent up before dropping back to show a 1.3 per cent gain at 116 pence earlier this morning.
Cable operator NTL said last week it had approached ITV about combining the two companies. ITV said it had received a "highly tentative expression of interest about holding discussions" from NTL and said it was willing to listen.
Analysts have told Reuters a deal between ITV and RTL would make more logical sense than a merger with the cable operator.