Companies: SCO   

Kurt Kerschak, former driving force at the European Space Agency, is known as 'Captain Kirk' to his friends, which well fits his likely new role as chief executive officer-elect of Scotty Group. This will be the product of a proposed merger between loss-making on-line video flop Motion Media and Scotty Tele-Transport, an Austrian-based supplier of video-communications kit for the military.

Himself an Austrian, Kerschak, who worked with the Russian MIR space station, helped create Scotty Tele-Transport seven years ago and has developed it into a supplier of equipment to UK, US and other armed forces. The proposed merger, handled by ARM Corporate Finance and broker Charles Stanley, is to be funded initially by a £10 million Motion Media share placing and offer at 4p and later, if Scotty Tele-Transport's results this year justify it, a further £38.5 million.

This will be paid either in cash or, if Motion Media so decides, in 'deferred consideration' shares at either 11p or the market price if it is higher. Advisers say Motion Media had hoped to issue new shares now at 12p, but its historic loss record ruled that out.

Long-time Motion Media holder Colin Blackbourn, of broker Shaw & Co, says Scotty can make £1.5 million in 2004 and claims an earn-out p/e ratio of 9.5. The merged company will change its year-end to August and hopes strong-nerved punters will boldly go where the more cautious may fear to tread.