LONDON — Yorkshire-Tyne Tees Television late Monday confirmed that it is in ”preliminary” talks to be acquired by fellow ITV company Granada.
Granada already owns 32% of YTT-TV, whose two regional ITV stations in northeast England border on Granada’s own ITV stronghold in the northwest.
Earlier this year, Granada made a public statement ruling out an immediate bid for YTT-TV because the stock price was too high. Under stock exchange rules, that meant Granada had blocked itself from making a move for three months, but that period expires June 13.
The YTT-TV management has long made it clear that it would welcome a Granada takeover at the right price.
In a joint statement, the companies said any offer would value Yorkshire’s shares at 1,175 pence per share, a premium of just 1.3% on Monday’s closing price.
Buoyed by takeover talk, Yorkshire’s shares closed trading Monday at 1,160 pence, an increase of 52.5 pence.