ITV giants on brink of £4bn merger

THE Government is expected to give a controversial green light to the £4bn merger between Granada and Carlton Communications on Wednesday, effectively creating a single ITV company.

The announcement from Trade Secretary Patricia Hewitt is likely to provoke protests from advertisers and competitors. But she is expected to follow the recommendations of the Competition Commission which has been studying the merger for months.

Between them, Carlton and Granada sell just over half the total UK commercial television advertising and the go-ahead is likely to put restrictions on how they sell airtime.

Shares in both companies are expected to rise sharply if the merger is cleared, with City analysts saying that they could save at least £100m a year between them. The news also comes as ITV is celebrating its first year-on-year rise in audience ratings for a decade.

The new company - likely to be called ITV plc - will be chaired by Carlton boss Michael Green and its chief executive will be Granada's Charles Allen. The merger will also lead to a management shake-up.