TV merger rebels seek top scalp

MAJOR shareholders in Granada and Carlton are ready to demand the scalp of either Charles Allen or Michael Green, the television groups' chairmen, as the price for agreeing a merger.

Roger Parry, head of radio and outdoor advertising group Clear Channel, has been approached by investors who want him to become chief executive when the two companies merge.

Rupert Gavin, head of BBC Worldwide, has also been tipped for the role and an unidentified third executive has been sounded out by shareholders.

Investors in Carlton and Granada are known to be unhappy about the planned management structure if the Office of Fair Trading gives the go-ahead to the merger. This would see Green, who heads Carlton, and Allen, boss of Granada, become chairman and chief executive respectively.

The men have presided over disastrous slides in their companies' share prices. Investors are also enraged that they are still in their jobs after blowing nearly £2bn on ITV Digital, the joint pay-TV venture that collapsed last year.

Industry executives say Parry has been approached to join the board of the merged group before becoming chief executive. Parry said he was 'not a candidate' for the job.

The Office of Fair Trading is set to refer the ITV merger to the Competition Commission, amid concerns over the proposed group's more-than 50% dominance of TV advertising, the Sunday Times reported. An investigation could take three and a half months.