Sharewatch: Carlton And Granada Mixed As Merger Doubts Grow
The will they wont they Carlton and Granada merger saga continued to dominate the media market on Thursday, after the broadcasters’ main defence against competition concerns were reportedly dismissed by the Office of Fair Trading.
According to the Financial Times, the OFT’s advice to the Competition Commission states: “It seems reasonable to conclude that there might be significant competition in the London area between Carlton and Granada that would be eliminated by the merger.”
The comments followed the assertions from Lehman Brothers that a single ITV group is unlikely to receive regulatory approval (see ITV Merger Unlikely With Combined Sales House).
Market rumours continue to suggest venture capitalist groups are eyeing the broadcasters for a take-over bid. The latest rumours suggest that two separate groups are structuring proposals. Carlton and Granada saw stocks fall by 2.51% and up 0.75% respectively.
Elsewhere, media analysts eyed with concern the unfolding SARS crisis, which has lead some economists at Morgan Stanley to predict global recession.
The closing prices of media company shares on Thursday were:
