Market report: Buzz in Square Mile as US suitors eye ITV takeover

Chatter in the Square Mile that Liberty Global could buy out ITV is nothing new, but rumour has it that the Virgin Media owner may face competition from some of the world’s largest companies.

The word on the street is that major shareholders of ITV have been sounded out by tech giants Apple, Amazon and Netflix about a possible takeover.

They are thought to have been enticed by the cheap pound and ITV’s production arm — behind shows such as Mr Selfridge and which has been growing over the past few years through acquisitions.

The gossip suggests the US giants are willing to pay 300p a share, valuing ITV at around £12 billion.

That’s 50% up on the present share price, which edged down 1.1p to 200.2p today, although ITV’s shares were trading as high as 268p at the end of 2015 before collapsing amid concerns about TV advertising spending.

Sources said the purported interest could prompt Liberty, which has built a near-10% stake in ITV, to make a move for the entire company.

ITV, Amazon, Apple and Liberty said they did not comment on market speculation. Netflix did not respond for comment.

The pound weakened after the Supreme Court ruled that Parliament must vote on whether to trigger Article 50. This had the effect of boosting the FTSE 100 — which is dominated by dollar-earning companies — by 20.03 points to 7171.21 points, with miners driving gains.

Rio Tinto was up 121p, or 3.5%, at 3595.5p as it sold its Aussie coal subsidiary Coal & Allied for $2.45 billion (£1.96 billion).

Investors cashed in their William Hill shares after UBS downgraded to Sell, warning that they were underestimating the impact of the regulatory clampdown on addictive fixed-odds betting terminals — dubbed the “crack cocaine” of gambling.