Sharewatch: Communications Bill Lifts ITV Partners

Carlton and Granada were seen in the spotlight yesterday, improving by 2.24% and 1.04% respectively, following confirmation that the Government’s long awaited Communications Bill, which paves the way for the creation of a single ITV (see Draft Communications Bill Relaxes Cross Media Rules), had completed its passage through Parliament.

However, the two ITV partners still need the approval of the Competition Commission before they can go ahead with their proposed £2.6 billion merger (see Competition Commission Delays Verdict On ITV Merger).

WPP was also seen in focus, falling 0.10%, as it moved closer to completing its takeover of Cordiant Communications (see WPP Closes In On Cordiant, Shares Delisted). Meanwhile, Active Value was dealt another blow in the fight for control of the struggling advertising group following reports that the management team it had backed to rescue Cordiant withdrew its support.

The wider market was slightly depressed yesterday and the FTSE 100 closed 0.6% lower at 4,0771 as London blue chips relinquished early gains to finish slightly weaker.

The closing prices of media company shares on Wednesday were: