Granada shares were down 3.5%, or 2.25p, to 62.75p and Carlton fell 5%, or 5p, to 95p, despite a general rise on the FTSE in early trading. At 9.08 this morning the FTSE 100 had risen 12.4 points to 3,777.8.
Speaking at Granada's annual general meeting yesterday, chairman Charles Allen warned that first-half advertising revenues will be flat because the situation in Iraq was causing some advertisers to defer spending into the later part of the year.
This morning's falls more than wiped out the initial gains the broadcasters made yesterday afternoon, when Granada shares had risen 4.69% to 64.25p and Carlton was up 3.12% to 99p.
The companies are both being targeted by disgruntled institutional investors, unhappy about employment and remuneration packages at the companies. Allen addressed concerns that their current packages would not be carried over to a merged ITV as the company's pay policy would be addressed by a new remuneration committee after the merger.
Other media shares were barely affected by early trading. BSkyB rose 1.5% as news filtered through that it would hit the BBC with higher costs to be listed on its electronic programming guide. The BBC ended its £85m five-year carriage deal with the satellite network last week. Shares in Daily Mail & General Trust fell 0.3%, or 1.5p, to 502.5p.
Most advertising shares were flat this morning, except WPP Group, which was up 1.05%, or 4p, to 383.75p, and Aegis, owner of Carat, which was up 0.4%, or 0.25p, to 62.75p.
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