Carlton Communications and United News & Media yesterday announced plans for a merger which promises to force a shake-up in independent television in Britain. The deal - which would create a group valued at £8 billion sterling (€12.7 billion) on last night's share prices - is likely to accelerate the pace of the government's review of regulation of television ownership.
The Carlton/United tie-up would breach existing limits on share of national advertising revenue. The proposed merger, which investors received positively, could also speed the consolidation of the ITV network.
Granada, the hotel and media group which is the leading player in ITV, was last night examining the implications. One option under consideration could be a takeover bid for United.
Rival broadcasters were last night pushing for the merger to be referred to the Competition Commission. They argue the merger would create a firm with at least 36 per cent of the UK market for TV advertising.
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