Troubled ITV in �120m fundraising

The broadcaster needs a new chairman and chief executive

ITV has said it is looking to raise £120m to reduce debt by selling bonds.

Its plan to raise cash comes a day after two potential candidates to replace Michael Grade as ITV's chairman ruled themselves out of the running.

Last month, ITV's talks with Tony Ball, the former boss of Sky, about becoming chief executive broke down.

In a trading update, it warned revenue from advertising was set to fall by 3% in October from a year ago, but said it was outperforming rivals.

This represented an improvement on its last trading update in early August, when ITV forecast a 12% fall in quarterly revenues and a 7% drop in September.

ITV also said it had decided to keep Freeview channel operator SDN, which it put up for sale earlier this year.

The business, which makes about £40m each year by renting capacity to channels including Five and QVC, will instead be used to help plug the hole in ITV's pension scheme.

"Seeking to deploy SDN as asset backing to the pension scheme will help us manage our pension risk, whilst continuing to benefit from the strong cashflows that business delivers," the firm said.

Interim appointment

ITV's share price had climbed on Monday after news that Sir Crispin Davis and Sir Michael Bishop had withdrawn from the running for the chairman's role, prompting speculation ITV had become a takeover target.

The broadcaster has installed chief operating officer John Cresswell as interim chief executive.

It has been looking for a new chief executive since April when Mr Grade, then executive chairman, said he would step back from the executive role.

The company said in September that it had been agreed with Mr Grade that he would also stand down from the post of chairman.

The new chairman will be responsible for overseeing the process of finding a chief executive.

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