ITV bids doubt after shock exit

THE prospects of takeover bids for ITV groups Granada and Carlton has dipped after the shock resignation of Thomas Middelhoff as chief executive of German media group Bertelsmann.

Media sources suggested that Middelhoff's departure stemmed from key strategic differences, particularly his plans to raise funds through a stock market float. An initial public offering would have helped Bertelsmann build a war chest that could have been used to make bids for Carlton and Granada.

It already owns 65% of Channel 5 in Britain and has been viewed as one of the players most likely to lead a shake-up of the commercial television market in this country.

Bertelsmann sources said that any float of the company, which also owns book publisher Random House, pan-European broadcaster RTL and music group BMG, was now likely to at least be delayed, if not cancelled completely.

The privately owned group is known to have been concerned about the scrutiny that would accompany a public listing.

News of Middelhoff's resignation immediately sparked talk of him joining Deutsche Telekom, which parted company with its chief executive Ron Sommer earlier this month.

Middelhoff gained a reputation as an aggressive manager during his time at the Bertelsmann helm.

He was at the head of a push to modernise its key operating arms in the leadup to a flotation. The float had been pencilled in for 2005.