SMG extends bid for video group

SCOTTISH MEDIA GROUP, the television and newspaper company, yesterday extended its 80p a share bid for VCI until 20 October, prompting speculation that it was planning to raise its offer for the video distribution group.

SMG is believed to have received several serious approaches from companies interested in buying VCI's distribution and music businesses if SMG were to win the bidding war with Kingfisher, which has tabled an offer worth 120p a share. Industry analysts said SMG would be able to pay a higher price for VCI if it could directly sell on parts of the business to other buyers.