Shares in British media firms Carlton Communications and Granada were given a boost today from renewed speculation the two would merge.
Merger speculation between has waxed and waned this year but dealers said today potential changes to the British government's Communications Bill could mean a tie-up gets the go-ahead.
Shares in mid-cap player Carlton rose 6 per cent to 255p. Larger rival Granada gained 3.4 per cent to 127p, making it the biggest gainer on the FTSE Eurotop 300 index and the FTSE 100.
"The merger talk is the driving factor, particularly for Carlton's shares," said one equity dealer.
The Independent on Sundaysaid Granada held a board meeting on Friday at which Granada chairman Mr Charles Allen was given authority to pursue a deal. Sunday newspapers quoted Mr Allen as saying he was sure a deal would happen.
Downing Street is about to publish a Communications Bill that some media analysts believe will clear the way for the merger of Carlton and Granada. Now, the law prevents a firm owning more than 15 per cent of the television audience.
