Sparrowhawk, backed by venture capitalists 3i and Providence, is finalising the acquisition of Hallmark Intenational, the TV channels business of the greetings card giant, but it is widely expected that the company will then seek further and bigger acquisitions.
Elstein has let the city know he is interested in further deals and the Hallmark purchase alone is of a relatively small size for venture capitalists like 3i and Providence, leading to speculation, that further deals are planned. Shares climbed by 4.25p to 126.5p yesterday on the back of the new rumours
The new comes after ITV outperformed the London stock-market earlier in the weak on the back of talk that former BBC director general and venture capitalists Apax were lining up a bid.
Dyke has been continually linked with a bid for ITV ever since he left the BBC and rumours have increase since he teamed up with Apax in October. While the city has reacted to these latest rumours analysts have given the plans a cooler reception questioning the level of debt that could be supported in such a bid.
ITV floated its shares in February 2004 at the price of£1.48p, but since then the price has fallen as low as£1.00.
But sources suggest Elstein is unlikely to make a move for ITV until the Hallmark deal has been "bedded in", which could take about a year.
No comments yet