ITV shares recover amid rumours over chief
Shares in ITV continued to rally today as speculation regarding the future of chief executive Charles Allen intensified.
It is thought that Mr Allen, who is 49, will resign next week after two and a half years as the head of the UK’s largest commercial broadcaster.
His departure will trigger a race for one of the most high-profile jobs in UK media but the move is unlikely to deter bidders for the firm.
Johnston Press chairman Roger Parry is among those believed to be interested in ITV and is said to have plans to split the broadcaster into two separate companies – one housing production and the other channels.
Mr Allen was credited with creating ITV through the merger of Granada and Carlton in 2004 but has since come under pressure from low viewing figures and tumbling advertising revenues.
In March he fended off takeover interest from a consortium of private equity firms which planned to replace him as chief executive with former BBC director-general Greg Dyke.
Mr Allen said the 130p-a-share offer, which valued ITV at £5.37bn (€7.9bn), was not good value for shareholders. Since then shares have plunged as low as 94.25p although the stock was at 103.5p today after the speculation caused shares to rise 5% yesterday and a further 2% this morning.
ITV declined to comment on reports that Mr Allen was to stand down.
