Carlton was up as much as 6.33% to 256.2p, while Granada was up 5.06% to 129.75p at one stage.
The two are certain to get the go-ahead to merge when the government publishes its communications bill next week, in which it will lift rules standing in the way of a single ITV company. Under current legislation, broadcasters are prevented from owning more than 15% of the market.
The merger would create a media company worth around £5bn and would lead to a number of cost savings.
The move is sure to please the City after the debacle surrounding ITV Digital, where the two ITV companies have lost around £1bn.
The merger will be driven by Granada chief executive Charles Allen, who was given the go-ahead by Granada shareholders on Friday.
Allen told the Sunday Telegraph that the "strategic logic of a single ITV is inescapable. It is what the shareholders want and I'm sure it will happen".
Carlton chairman Michael Green would be chairman of the new group and Allen CEO.
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