Carlton-Granada await watchdog report

Monday, 6 October 2003 5:18 AM

Granada PLC denied on Sunday the Government was preparing for a management shake-up at the ITV network, which the firm runs jointly with Carlton Communications.

The denial comes as the Competition Commission is set to unveil Wednesday the terms of the two companies' £4 billion merger, announced last year.

The Sunday Times said yesterday the Government was expecting many changes at the executives level at the united entity ITV.

It is thought that Granada chairman Charles Allen and his Carlton counterpart Michael Green are at odds on many issues and a change at the top will be a welcome tonic for the new combined entity.

The Government is backing the merger as it will grant greater competition to BBC and BSkyB and protect ITV from a foreign takeover.

Granada dismissed the Sunday Times report as "pure mischief-making."

"It's inconceivable that anyone senior in the government would comment on management issues on the eve of a Competition Commission report," a Granada spokesman said.

"Charles Allen has a good relationship with the Government. If this was in any way representative of their view, then he would know."

The Department of Trade and Industry Secretary is likely to impose a series of conditions on the merger this week to maintain healthy competition in the market.

As Carlton and Granada control about 52 per cent of advertising on terrestrial television, some analysts are predicting the Competition Commission will recommend that the two firms sell off their advertising sales divisions.

The DTI is expected to give the go ahead to the merger.

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