Scotland-based SMG has confirmed it has received a new approach from UTV regarding a possible merger.
"As a result SMG has entered into discussions with the UTV board which may or may not lead to a merger," SMG said, adding it had suspended its search for a new chief executive.
In August SMG rejected an approach from UTV that would have given SMG shareholders a 52 per cent stake in the combined company. UTV said in September it had ended merger talks with SMG due to weak advertising markets.
UTV said in a separate statement it had approached SMG on November 23rd and that there was no certainty that an offer would be made.
SMG chief executive Andrew Flanagan abruptly resigned in July, having come under fire from investors unhappy with the company's performance.
Shares in SMG, owner of most of Scotland's commercial TV network, were up 3.5 per cent at 58-3/4 pence earlier this morning, valuing it at around £185.4 million. UTV shares were down 1.6 per cent at 380-1/4p.