Market cheers ITV company tie-up

Shares in UK broadcasters Granada and Carlton have received a welcome boost on news that they are planning to combine their programme and marketing activities.
On announcement of the collaboration, Granada shares rose 7% or 5.25p to 80p by midday August 19 while Carlton rose 6% to 137p.
The two companies said on Monday August 19 that they would work closely together on programme scheduling and marketing to increase their advertising income and number of viewers. Carlton chief executive Gerry Murphy told the Financial Times newspaper that the joint approach would result in a "virtual enterprise", to be launched in the autumn.
The two firms are the biggest franchise holders of the ITV television network, but have been hit hard by the slump in advertising revenue during the past year.
Earlier this year Granada and Carlton had explored a full-blown merger, but abandoned the plan when it became clear that regulatory approval was unlikely. "Under current competition rules a full merger would be very difficult", a Carlton spokesman told the Reuters news agency. "This is an initiative to make ITV more competitive, to improve its efficiency and marketing."
The two media firms hope to co-ordinate their programme scheduling, and make joint approaches to advertisers.
Carlton currently operates five regional ITV franchises, including HTV and Central, while Granada runs Meridian and Anglia.
(GB)