Carlton and Granada were reported to have entered talks when the draft bill was released at the beginning of this month. Talks between the two were thought to have been reignited by Granada chairman Charles Allen, who said he wanted to rekindle talks that foundered last year.
Carlton answered Allen's comments by saying Granada would have to pay a premium if it wanted to take over the smaller company. So far, Allen has failed to address the issue of how much Granada would offer for Carlton.
Speaking today at Carlton's half-year results presentation, chief executive Gerry Murphy dismissed speculation that the companies are considering merging. Asked whether the companies were involved in merger talks, he said: "No. We work with Granada every day. The relationship is good and currently our focus is on ITV."
Carlton this morning reported half-year pre-tax losses of £179.4m for the six months to March 31, down from £277.3m last year.
Murphy said that Carlton was looking at a number of different opportunities including deals with foreign companies, which would be allowed to take a stake in ITV following the approval of the bill.
"We are intrigued by the prospect of working in the UK with some of the world's biggest media companies, which were previously restricted. But it's too early to be prescriptive," Murphy said.
If Carlton and Granada merged, they would create a company worth £5.5bn. However, while the deal would be allowed by media ownership rules, it would still be subject to competition laws, which may prevent a merger.
Carlton shares were up 0.19% to 259.5p. Granada was up by the same percentage to 130.25p.
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