Shares in Granada and Carlton Communications raced higher today in anticipation of regulatory clearance of the British broadcasters' £4 billion sterling merger without too many strings attached.
After a year-long wait, the two main shareholders in ITV, Britain's largest commercial TV network, are about to hear a British government ruling on the terms of their merger. A source said the decision was expected on Wednesday.
The deal is widely expected to be cleared, with the addition of several remedies to address competition concerns. The merged company would control more than half of British television advertising.
Shares in Granada were up 6.1 per cent at 103-3/4p, and Carlton was up 9.6 per cent at 182-1/4 pence at midday.
Dealers said weekend press reports had led to optimism that any conditions placed on the merger would be limited. The British government is deciding whether the companies' advertising sales divisions should be sold to answer the concerns of advertisers.