When the market opened this morning, Carlton Communications rose by 3.4% to 187.75p, while Granada was up 2.4% to 105.5p, a rise of 2.5p. This follows gains at both companies yesterday, as word leaked out that the deal was likely to be given the go-ahead by Hewitt.
However, news that the deal, which will create one ITV company, is likely to be free from major conditions is cause for concern among those working in the advertising industry.
One of the industry's bodies, ISBA, said that it would be looking for sginificant concessions for advertisers.
"Whether these be 'structural' or 'behavioural' remedies, they will require significant analysis and it will take some time to establish whether they are likely to be effective in ensuring competition for advertisers in practice," ISBA said in a statement.
Reports say that Hewitt will accept recommendations that new rules about the way advertising is sold be introduced. But this stops far short of what the advertising industry had long been pushing for, which would have seen ITV retain two sales houses independent of Carlton and Granada.
Some solutions to the problem of competition that have been proposed include an auction of a portion of annual airtime and get-out clauses for advertisers if ITV's ratings fail to live up to expectations.
A report in The Times this morning says that even after today's decision is handed down, there will still be several more weeks of negotiations with the Office of Fair Trading, to protect the competitive position of advertisers. Ofcom is likely to monitor the situation once an agreement has been reached.
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