Sharewatch: SMG Climbs On ITV Merger Hopes

SMG, owner of ITV broadcasters Scottish and Grampian, climbed 5.41% amid optimism that the proposed merger between Carlton and Granada is progressing well. Analysts have claimed SMG is extremely oversold and the possibility of a swift merger could allow the group to sell off its TV arm.

Elsewhere, Cordiant Communications rose 3.64% on talk of an impending restructuring with reports suggesting that managers at Cordiant’s German advertising network Scholz & Friends are to bid for the business.

The media sector was lifted by broader market sentiment, which was cheered by cautious comments from chief UN weapons inspector, Hans Blix. Many analysts believe the huge war protests witnessed across the globe this weekend may prevent imminent attacks against Iraq. However, others remained sceptical that Monday’s rally could be sustained.

All eyes are on Reuters, which today announced record losses of £493m.

The closing prices of media company shares on Monday were: