Takeover SpeculationSurrounds Britain's SMG

25 July 2006

BELFAST: Following a spate of rumours, Ulster Television is thought to be preparing a £300 million ($557.6m; €439.6m) offer for troubled Scottish media group SMG, owner of Grampian TV, Scottish TV, Virgin Radio and the Pearl & Dean screen advertising business.

Shares at SMG have fallen 23% in the past three months, and its ceo Andrew Flanagan resigned last week amid criticism of the company's strategy after acquiring Virgin Radio three years ago.