Buyout Firms Broadcast Bids For Ireland's TV3

Major buyout firms have begun circling one of Ireland (Other OTC: IRLD - news) 's biggest television companies as its current owner abandons efforts to raise new investment funds.

Sky News understands that private equity groups including Carlyle have held preliminary discussions with Doughty Hanson about a possible takeover of TV3.

Doughty bought TV3, which is Ireland's only privately owned terrestrial free-to-air national commercial TV channel, in 2006.

The loss of key programmes such as Coronation Street and Emmerdale has dented TV3's audience share, and reports have suggested that Doughty is unlikely to recoup the €265m it paid for the business nearly a decade ago.

A number of other media groups, including Liberty Global (NasdaqGS: LBTYA - news) , are also reported to have expressed an interest in acquiring TV3, although it is unclear whether they plan to table formal offers.

News of the early-stage discussions with potential buyers such as Carlyle comes in the week that Doughty said it would abort its plans to raise €2bn for a new fund and focus instead on realising value from its residual investments.

Once among Europe's pre-eminent private equity groups, the firm was dealt a huge blow in 2012 when Nigel Doughty, its co-founder and the then owner of Nottingham Forest FC, died after suffering a heart attack.

Stephen Marquardt, Doughty's chief executive, said this week: “Over the past three decades, we have focused consistently on taking all steps necessary to achieve strong exits for our portfolio investments and we will now be more focused than ever on achieving that ambition.

"Significant co-investment by the team in Funds IV and V and the prospect of carried interest as a result of strong performance, means the interests of the professionals at Doughty Hanson and our investors remain totally aligned.

“We have reflected on several years of discussions with existing investors and, while today’s announcement is disappointing for those investors that have committed to the current fund raising efforts, it pre-empts further prolonged uncertainty.

"We will now enter into a period of review with our employees and investors to explore the possibility of another fund in the future.”

Alongside TV3, Doughty's funds continue to own a number of industrial, outsourcing and manufacturing businesses including Eurofiber and LM Wind Power.

Carlyle and Doughty declined to comment on Thursday.