Granada Says Media/Hotels Split Is ‘Not On The Agenda’

Hotels and television group, Granada, has this morning denied a report in today’s Guardian that it plans to split its two main operations by listing the television and hotels holdings separately.

Following an interview with Granada’s group chief executive, Charles Allen, the paper reported that he was hoping to realise the ‘true value’ of the company by running the television and hotels operations separately. Granada operates the London Weekend Television, Yorkshire, Tyne Tees and Granada Television ITV franchises.

The report claims that Allen is seeking an international media partner which he hopes would ‘trigger a reappraisal’ of the company’s value. He is also quoted as saying that programme making and pay-TV programming make Granada one of the most profitable media companies in Europe and that the City currently undervalues these assets.

However, a spokesperson for Granada told Newsline that a demerger of the TV and hotels operations is definitely “not on the agenda”, adding that such a move would not realise shareholder value. A split of operations, which has been rumoured since Granada bought the Forte hotel chain in 1996 (see Granada Wins Takeover Battle), is only being ‘passively considered’, as are all options that might increase shareholder value, says Granada.

The company spokesperson claimed that the Guardian article had taken Charles Allen’s comments out of context and that references to a possible demerger of operations had been exaggerated.

Granada Media Group: 0171 620 1620