ITN Shareholding Maintained By Carlton And Granada

Carlton Television and Granada Television, who both had to dispose of shares in ITN by 31 December 1995 have solved the problem by “parking” the shares in two new companies.

Under the Broadcasting Act of 1990, no ITV company can hold more than 20% share of ITN; however, Carlton and Granada both owned 36% following their acquisitions of Central and LWT respectively. The deal, under which both Carlton and Granada have created new deadlocked companies, has been pronounced legal by the ITC.

However, the ITC has said that the arrangements, whilst strictly complying with the Act, are “contrary to the spirit and intention of the Broadcasting Act 1990… The ITC regrets that Carlton and Granada are giving active consideration to interpreting the ownership rules in a way which in the ITC’s view was not originally intended by Parliament.”

David Glencross, Chief Executive of the ITC said, “We have urged Carlton and Granada to reduce their shareholdings to the level envisaged by the Act as soon as it is practicable, and in a way which is consistent with both the spirit and the letter of the legislation. We very much hope that the new broadcasting legislation will address avoidance mechanisms of this kind.”

Carlton this morning refused to comment on any future plans.

ITC: 0171 255 3000