Two British dominant commercial broadcasters Carlton and Granada unveiled plans yesterday for a merger. The pair, which have been hit hard by the downturn in global advertising spending, said they were in advanced discussions over a tie-up that would see Granada shareholders receive 68 per cent of the equity of the new group and £200 million sterling (€316.7 million) in cash. Carlton shareholders would receive 32 per cent of the equity.

The firms warned, however, there was no assurance that any final agreement would be reached and any merger would require regulatory approval. Nevertheless, Carlton and Granada shares leapt on the news. By Friday's close, Granada's share price was up 8.3 per cent on the day at 72.75 pence and Carlton shares were 13.7 per cent higher at 128.5 pence, albeit on a stronger overall market.

The two broadcasters, which form the backbone of Britain's Independent Television Network (ITV), held discussions about a full merger earlier this year. Those talks were halted over concern that a deal would be blocked by British competition regulators.

The firms have said that Carlton chairman Mr Michael Green would be chairman of the new group and Granada chairman Mr Charles Allen would take the job of chief executive. - (AFP)