NEWS: SCOTTISH MEDIA GROUP PLC MERGER TALKS WITH UTV PLC COULD BE SCUPPERED BY TURNAROUND SPECIALIST WITH

13% STAKE by GRANT GODDARD

www.grantgoddard.co.uk February 2007

Ongoing merger talks between UTV plc and Scottish Media Group plc [SMG] could be scuppered by Hanover Investors Management Limited, a specialist turnaround company that has increased its stake in SMG to 12.59% and now holds almost 40m shares in the company. Hanover specialises in making investments in businesses that are underperforming, and is thought to be unhappy that SMG re-opened merger discussions with UTV on worse terms than it had rejected last year. An alliance between Hanover and fellow shareholder SVG Capital Limited (which owns 4.8% of SMG) could result in a call for an SMG extraordinary meeting to reject UTV’s merger and to demand the resignation of SMG chairman Chris Masters. City rumours suggest that merger talks are stumbling over the equity split between UTV and SMG.

[First published in 'The Radio Magazine' as 'Hanover Could Block UTV-SMG Merger', #777, 28 February 2007]

Grant Goddard is a media analyst / radio specialist / radio consultant with thirty years of experience in the broadcasting industry, having held senior management and consultancy roles within the commercial media sector in the United Kingdom, Europe and Asia. Details at http://www.grantgoddard.co.uk

News: Scottish Media Group plc Merger Talks With UTV plc Could Be Scuppered By Turnaround Specialist With 13% Stake page 2 ©2007 Grant Goddard

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