According to a report in the Financial Times, smaller investors have voiced their disquiet about NTL's debt increasing and the problems that integration could pose as the cable firm works at putting NTL, Telewest and Virgin Mobile together. However, the deal is supported by two high-profile stakeholders, Sir Richard Branson and WR Huff Asset Management, which between them own 17% of the company.
At the same time, ITV management are concerned that merging with NTL would scupper any chances it has of reviewing the Contract Rights Renewal, which takes around £100m from ITV every year.
NTL only has a 4% share of the UK TV ad market, but even that small amount for ITV would effectively postpone any realistic chance of lifting CRR next year, which would make a significant dent in any future profits.
CRR costs ITV1 around £100m a year and ITV had been hoping that the system would be removed next year.
As reported on Brand Republic yesterday, NTL would be expected to table a £5bn-plus cash deal to acquire ITV in order to satisfy institutional investors in the UK.
ITV is still without a chief executive, but it is understood that NTL has approached former Channel 4 boss Michael Jackson to take over the post, should its bid succeed.
At the same time, it is being reported that ITV has announced plans to close its "gold-plated" final salary pension scheme to existing members, which makes up around a quarter of ITV's 6,000-strong work force.
Despite ITV's claims that axing its pension scheme was merely at the consultation stage, it is understood that April 1 2007 has already been slated as the day in which a new scheme would be introduced.
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