ITV merger ruling drags on

GRANADA and Carlton face an even longer wait to hear the Department of Trade and Industry's ruling on their merger.

Government officials have extended their timetable for considering the report because the issues are so complicated.

Normally, ministers make a ruling within 20 working days of receiving a merger report from the Competition Commission. But the DTI said the 'target timetable' for the duo has been revised to 30 working days - an extra two weeks. It said: 'It is now looking like early October.'

The Daily Mail revealed last month that the Competition Commission has recommended that the merger is approved, subject to certain conditions.

Its 456-page report landed on Trade Secretary Patricia Hewitt's desk on 21 August. She has the final say, but is unlikely to overrule the regulator's decision.

Shares in both broadcasters have surged since spring, on hopes that the advertising market is improving and the merger will be approved.

Carlton has bounced from a low of 68 1/4p in March to 180p, while Granada has risen from 45 1/2p to 106 1/4p.