New AOL Time Warner chief has sights set on UK deals

AOL Time Warner, the media giant, yesterday indicated that, despite its troubles, it was still open to buying assets in the UK, saying it was interested in UK broadcasters and had not given up hope on its music rival EMI.

Richard Parsons, the newly appointed chief executive, said Europe remained a long-term growth engine for the world's biggest media company and Britain represented a crucial springboard, but he signalled he would not be rushing to forge deals at current prices.

"The UK is a very attractive market and any of us would like to be here and be more embedded in this market," Mr Parsons told a conference in London organised by the Royal Television Society.

However, he suggested that AOL, which is grappling with a debt mountain, would not be looking to make a UK acquisition soon. "At the current [valuations] that some of these assets are trading at, I don't think there's going to be a stampede in the bidding process," Mr Parsons said.

The Communications Bill, now passing through Parliament, proposes that non-European companies be allowed to buy UK broadcasting assets for the first time. However, it has also led to concerns that a takeover of ITV by a US predator, such as Viacom, Disney or AOL, could lead to a dumbing down of the channel, with a diet of cheap American exports. Mr Parsons said it would make no sense for any company to "dump" its unsuccessful programming in a foreign market.

Looking at other possible strategic opportunities, Mr Parsons said he was still convinced Warner Music's failed merger with EMI would have been a "brilliant transaction".

Also speaking at the conference, Patricia Hewitt, the Secretary of State for Trade and Industry, said the Government would not retreat from the controversial clauses in the Communications Bill. This provoked a charge of "dogmatism" from Lord McNally in the audience. He was a member of a parliamentary committee that scrutinised the Bill and suggested it went too far in deregulating UK media.