Carlton Boss Threatens To Halt Planned ITV Merger
It is understood that Carlton chairman, Michael Green, has threatened to call off the proposed merger with Granada if the two are forced to sell their advertising sales houses.
According to a report in The Times, Green has pledged to call a halt to the £2.6bn deal to create a single ITV company if the Competition Commission orders the sell-offs to allow the merger to go ahead.
Last week the Competition Commission included the sale of both advertising sales houses on a list of “hypothetical” remedies that could come about if the merger is found to be against the public interest (see Carlton And Granada May Have To Sell Sales Houses).
Green reportedly said that in this case a merger “would not make commercial sense.”
The news comes amid speculation that some of Carlton and Granada’s biggest shareholders are pressurising the two broadcasters to abandon Charles Allen as chief executive if the proposed ITV merger goes ahead.
Investors have reportedly held secret meetings with the company at which they raised concerns about possible tensions between Granada’s Allen and Carlton’s Green.
It is understood that the calls for change are being led by a small group of investors which hold big stakes in both companies. Some of ITV’s larger shareholders are also thought to have approached senior media figures with the aim of finding a successor to Allen, who recently courted controversy by agreeing to accept a £2 million payout if he decides to leave the company (see Granada Chairman Set To Give Up Walk-Out Clause).
It is likely that shareholders will tread carefully with regard to senior management changes because of fears that Allen’s immediate departure could endanger the ITV merger. Both Carlton and Granada have seen shares fluctuate recently as investors await the Competition Commission’s decision over the future of the broadcasters (see below).
ITV: 020 7843 8000 www.itv.com
Recent Television Stories from NewsLine Flextech Appoints Opie As Managing Director Channel 4 Returns To Profit After Heavy Losses BBC Moves To Silence Critics With New Programme Policy
Subscribers can access ten years of NewsLine articles by clicking the Search button to the left