Sun 18 Feb 2007
Scotsman
JOHN de Mol, the billionaire creator of TV show Big Brother who owns 3% of telecoms group Thus, has taken a stake in the Scottish company's rival, Kingston Communications.
Analysts view Kingston and Thus as potential merger partners, and the two are believed to have held talks four years ago about joining forces.
De Mol acquired 3% of Hull-based Kingston this month through his investment vehicle Talpa Beheer. In December, Talpa bought 3.06% of Thus.
Analysts believe the UK telecoms market is ripe for consolidation, with margins squeezed by competition and overcapacity. By taking stakes in both companies, de Mol has bought himself a seat at the table if consolidation occurs.
Jim McCafferty, analyst at Seymour Pierce, said Kingston Communications is effectively controlled by Hull City Council, which has 30.5%. He said: "The industrial logic for a merger is quite compelling but egos of management teams could block a deal."
De Mol, who co-founded TV group Endemol in 1994 and developed shows including Big Brother and Deal Or No Deal before selling the company to Telefonica in 2000 for €5.5bn, owns stakes in several British companies, mainly in media, telecoms and entertainment.
Talpa Beheer owns 10.1 million shares in RDF Media, the maker of Wife Swap, representing 26.2% of the firm. It also has a 10.8% stake in Shed Productions, the company behind Footballers' Wives.
Talpa has also invested in British firms Sanctuary Music, Tinopolis, Hit Entertainment and Manchester United.
