ITV books £340m "loss" on sale of Thomson stake

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ITV posted a £340 million (E510 million) loss on the sale of its 5.5 per cent stake in Thomson, the French media and consumer electronics group.

The stake is a legacy of Carlton's £1.4 billion disposal of Technicolour, the video manufacturing and distribution business which it sold to Thomson in January 2001. Carlton has since merged with Granada to form ITV. At the time Carlton agreed to take part of the sale price in Thomson shares that were valued at £515 million or E40-a-share. The subsequent sell-off in media stocks has brought Thomson's shares down to E16.5.

Charles Allen, ITV's chief executive, sold the shares at a five-month high and said the £162 million disposal would be used to cut the group's borrowings.

Continuing with the sale of its non-core assets, ITV could raise as much as £40 million from the sale of its post-production firm, The Moving Picture Company, as it cuts the shortlist of bidders down to six.

The remaining six bidders for the business, which is behind commercials for the likes of Levi's and Stella Artois and music videos for Madonna and Primal Scream, include Kodak and Thomson. US venture capital firm Carlyle is also understood to be in the running.

It was earlier reported that former Carlton boss Michael Green, as well as global advertising group WPP, were also bidding, but it is unclear as to whether they have made the shortlist.