Sharewatch: ITV Partners Waver On Competition Concerns

Analysis of the media sector shows that ITV partners Carlton and Granada fell by 9.50% and 7.78% week on week following warnings that proposals to link advertising rates with audience figures in an attempt to secure approval for their planned £2.7 billion merger (see ITV May Link Advertising Rates To Audience Figures), would not go far enough to address advertisers’ competition concerns (see Advertisers Wary Of Revised ITV Merger Plans).

Meanwhile, Cordiant also continued to grab the headlines, dropping 32.14% week on week on news that the troubled advertising group is expected to go to the High Court where an effort will be made to put it into administration. The move could lead to the splitting of assets between a French competitor and a US investment fund.

Illicit corporate behaviour also remained in focus and investors expecting a swift move towards greater corporate accountability were quashed by comments from the largest US bank, Citigroup, which claimed it had “higher priorities” than shareholder activism. The comments follow analysts predictions that shareholder activism, particularly against the levels of executive pay, will be a key factor to watch in the markets over the coming year.

The closing prices of media company shares on Friday were: