A private equity group is preparing a counter-bid for media group SMG following Friday's merger offer from Northern Ireland broadcaster Ulster Television Plc (UTV), according to a newspaper report in Britain today.
The Observerreports that Rob Woodward, former commercial director of Channel 4, and Richard Findlay, one-time boss of Scottish Radio Holdings, are understood to have recruited private equity backers for a counter-bid for SMG.
It reported its sources in London as saying that 3i and the private equity arm of investment bank UBS have been sounded out about a possible stg£300 million cash bid.
The newspapers said Permira, Candover, CVC and Cinven may also table an offer.
SMG, owner of British nationwide broadcaster Virgin Radio, and UTV said on Friday that under that proposed deal SMG shareholders would own 50 per cent of the combined company, which would include UTV's ITV franchise in Northern Ireland and TalkSport radio.
However, unless UTV can improve the terms of the offer, which is for a "merger of equals" with no cash changing hands, the SMG board, led by Chairman Chris Masters, is poised to reject the approach, the Sunday Timesreported.
SMG could not immediately be reached for comment.