A new chief executive officer has been appointed at Carlton Communications. Gerry Murphy, the former chief executive of freight distribution group NFC, will take up the position with immediate effect as the TV company prepares for the final round in the bidding war for consolidation within ITV.
He will take the place of Steven Cain, who stepped down as CEO shortly after the group announced its proposed merger plans with United (see Cain To Leave Chief Executive Post At Carlton). Murphy, who has no previous media experience, said of his appointment: “All media businesses face dramatic change as new technologies present unprecedented challenges and opportunities. Carlton is very well placed and I’m really looking forward to working with Michael [Green] and his team to realise the company’s full potential in this incredibly dynamic industry.”
With merger plans between Carlton and United now abandoned (see United “In Talks” As Deal Collapses) Murphy has denied that a battle is being waged between the three main ITV groups and has said that his preferred role for his new employer is an independent one in partnership with Granada.
In today’s Independent he said: “I expect that for the next few years ITV will be run as a partnership between Granada and Carlton. I think that should be fine. There is plenty of history of them working together.”
With United’s assets now up for grabs, however, Granada may be looking elsewhere for its partners. The group effectively put up for sale its three franchises – Meridian, Anglia and HTV – as well as its 35% stake in Channel 5. Industry sources say that Granada is preparing to make a bid for Meridian, and if it fails to gain it, will make a hostile bid for the whole group. It has until 4 August to make its move, under Takeover Panel rules.
This morning’s share prices also indicate that UNM is the favourite to receive offers or bids from Granada, not least because a takeover bid for Carlton would mean a that one of the two London franchises – LWT and Carlton – would have to be sold off.
Since United put its assets up for sale on Friday it is believed that it has received two serious expressions of interest for its television arm. The value of this has been placed at £2.2bn and although Granada and Carlton are the most obvious bidders, there is believed to be interest from foreign parties, in particular RTL, which is eyeing its Channel 5 stake. If Granada bid for its Meridian and Anglia stake, Carlton could be content with HTV, and the rest of United’s assets, including the Express newspaper group, would be sold off.
Carlton Communications: 020 7663 6363 United News & Media: 020 7921 5000 Granada: 020 7620 1620
