Sharewatch: Carlton And Granada Rise On Merger Approval

The media sector was lifted yesterday by news that the long awaited merger of Carlton and Granada would go ahead unchallenged after shareholders gave the deal their unanimous support. The ITV partners were seen up by 5.18% and 4.81% respectively (see ITV Merger Receives Final Green Light From Shareholders).

Renewed talk of advertising budgets recovering from the ongoing trough was enough to help WPP, rise by 3.20%. Emap was lifted 2.4% higher by the news and Pearson rose by 1.27%.

Meanwhile, Reuters was seen up by 2.4% ahead of tomorrow’s trading update. There was also speculation that the global information group might announce a lucrative contract win.

Broader market sentiment dipped yesterday as London blue chip close at a 2004 low due to weak defensive stocks. The FTSE 100 was seen 0.2% down at 4,440.1, but the more cyclical FTSE 250 rose by 0.7% to 5,963.6.

The closing prices of media company shares on Tuesday were: