Broadcasting legislation due to be introduced next year will finally allow the two biggest ITV companies to merge. However, should a bid be launched by a foreign rival prior to this happening, then Granada would have to seek government approval to launch a bid.
It is not an unprecedented move. Granada was granted such approval when it bid for the London weekend ITV franchise LWT in 1994.
Granada is concerned that Germany's Bertelsmann or other European rivals might try to swoop on Carlton. Earlier this year, the German company was reported to have approached Carlton, but the talks came to nothing.
However, Bertelsmann would have to sell its controlling interest in Channel 5, which it controls through its RTL arm.
While the loss-making ITV Digital is still up and running, a merger between Carlton and Granada is still seen as a more likely outcome. The two ITV companies are currently working to reduce losses.
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