UK's SMG Rejects UTV Merger Bid

SMG, the parent of VIRGIN RADIO/LONDON, has rejected a merger proposal from ULSTER TELEVISION. The revised proposal would have given SMG stockholders 52% of SMG, but SMG called the proposal "unacceptable having regard to the relative market values of (the companies), SMG's prospects and the value of its portfolio of assets." Nevertheless, SMG left the door open to meet with UTV's board to talk about a merger that would address those issues. The rejection is the second time SMG has spurned UTV's overtures; other groups are reportedly ready to make their own moves to take over SMG.

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