Ulster TV switches on to Wireless Group

THE BATTLE for ownership of the Wireless Group hotted up today when broadcaster Ulster TV confirmed it was interested in making an offer. Ulster, which broadcasts TV and radio and supplies internet and telecoms services across Ireland, is thought to be close to a £100m deal for the company, which owns the talkSport radio station.

The move comes just three weeks after The Wireless Group said a number of parties had stated their interest in buying the firm.

Former Sun newspaper Editor Kelvin MacKenzie, who is chief executive and chairman of The Wireless Group, sparked the battle in February when he announced plans to take the company private.

He suffered a setback, however, when it was reported last month that talks with backers from private equity group CVC Capital Partners had ended. It is thought MacKenzie has also been talking to investment group 3i about financial support for a bid.

He owns just over 6% of the Wireless Group, and stands to make around £6m if a deal with UTV goes through. Shares in the company rose 5% to 86.5p today amid speculation that UTV will bid just over 90p a share.

In addition to talkSPORT, The Wireless Group owns 16 local radio stations such as Swansea Sound and Valleys Radio in South Wales, Wave 102 in Dundee and Signal One in Stoke-on-Trent. Recent results showed it had reduced its annual losses to £9.7m from £11.2m and made a good start to 2005.

The potential bid battle marks the latest development in a round of consolidation in the sector that has seen Capital Radio and Classic FM owner GWR agree to merge in a £711m deal. Publishing group Emap confirmed earlier this month that it was in talks to buy Scottish Radio Holdings.

As well as the Northern Irish ITV franchise, Ulster TV has radio stations in Cork, Limerick, Dublin and Liverpool and recently won a new licence to broadcast in Belfast. Its annual profits were up 46% to £13.9m last year after seeing television advertising revenues increase by 16% in what it described as a year of 'outstanding achievement'.