MARKET REPORT: ITV shares surge because it’s focused for takeover

Shares in ITV jumped on reports it has become a takeover target. The stock rose 8.6 per cent, or 5.65p, to 71.15p though it remains down more than 70 per cent since its peak almost a decade ago.

The business, which is home to shows including Coronation Street and Love Island, and whose production arm ITV Studios is behind recent hits such as Rivals for Disney+, is now valued at £2.5billion.

Shares have been dragged down in recent years by worries over advertising spend and the profitability of its streaming service ITV X.

This has prompted speculation that the company could be sold or broken up, with its Studios production arm split off from the broadcasting division.

Over the weekend, Sky News said private equity giant CVC Capital Partners was interested in a deal.

The report said CVC was planning to team up with a European broadcaster such as France’s Groupe TF1, and the pair would then split the company with CVC taking on Studios and the broadcasting arm going to TF1.

Takeover target: ITV, whose production arm ITV Studios is behind recent hits such as Rivals for Disney+, is now valued at £2.5bn

All3Media, owned by RedBird Capital, and Mediawan, backed by the private equity giant KKR, were also said to be interested in ITV Studios.

Global stock markets edged higher and US borrowing costs fell as investors welcomed Donald Trump’s decision to pick fund manager Scott Bessent to be US Treasury Secretary when he returns to the White House. 

Jefferies economist Mohit Kumar described Bessent as ‘pro-growth but also fiscally conservative’, adding: ‘Trump’s pick supports our view that concerns of massive

fiscal expansion under Trump are exaggerated.’

The FTSE 100 inched up 0.4 per cent, or 29.6p, to 8291.68 and the FTSE 250 advanced 0.8 per cent, or 167.57 points, to 20749.26.

JD Sports shares surged 10 per cent, or 9.34p, to 102.8p after analysts at Deutsche Bank raised their rating on the self-styled ‘King of Trainers’ from ‘sell’ to ‘hold’ – a sign that they believe the stock has fallen far enough. 

JD fell more than 15 per cent in a single session last week as it warned it may not hit the £1billion profit milestone this year due to weaker-than-expected trading.

Even after yesterday’s mini-recovery, the shares are down nearly 40 per cent since mid-September. And while the Deutsche upgrade was welcome, UBS analysts cut their price target for the stock to 155p from 178p.

Mining giant Anglo American has completed the first stage of its break-up with the £3billion sale of its Australian coal business to American firm Peabody Energy.

The deal is part of a major restructuring plan launched after the London-listed firm fought off a £39billion takeover attempt from rival BHP (up 0.4 per cent, or 9p, to 2086p) earlier this year. Anglo shares added 1.4 per cent, or 32p, to 2391p

Pest control group Rentokil Initial shares rose 1.5 per cent, or 6.2p, to 412.9p after the appointment former Flutter executive Paul Edgecliffe-Johnson as chief financial officer.

Pharma giant AstraZeneca posted upbeat data from a trail of its cancer drug Truqap. Shares were flat at 10474p.

Stock Watch – Benchmark Holdings

Shares in Benchmark Holdings jumped 6.7 per cent, or 2.35p, to 37.7p after selling its genetics business for £260million.

The company, which specialises in the breeding and harvesting of fish and shellfish, said Novo Holdings will pay £230million upfront plus £30million in future depending on performance.

Novo Holdings is the controlling shareholder in Ozempic-maker Novo Nordisk.

Benchmark plans to focus on its advanced nutrition and health interests.