Shares in broadcaster ITV rose more than 4.5 percent in early Monday trading after a newspaper reported that private equity firms were considering a 3 billion pound bid.
Apax Partners and KKR are among private equity groups "running the numbers" and considering an offer of about 100 pence per share, The Observer newspaper said on Sunday.
A person familiar with the situation denied that Apax was considering a bid for ITV. Kohlberg Kravis Roberts & Co and ITV declined to comment.
Shares in the broadcaster opened 4.5 percent higher at 80 pence on Monday, but had slipped back to 78 pence by 10:15 a.m.
Last week the government ordered ITV's largest shareholder, rival pay-TV firm BSkyB, to reduce its 17.9 percent stake to below 7.5 percent because it hindered competition.
The BSkyB stake had appeared to give ITV a period of corporate stability as it could deter any takeover. The credit crunch has also made it harder for major deals to take place.
But ITV is trading near all-time lows and the Observer report said the groups were considering an opportunistic offer. BSkyB bought its stake at 135 pence per share in November 2006.
Analysts at UBS said they would be surprised if private equity was willing to pay 100 pence given the lack of advertising visibility and ITV's operational gearing.
"We are cautious on the UK media owners but currently have a neutral rating on ITV in recognition of share price weakness and our expectation of better than expected 2007 results and a robust first quarter," UBS said.
