Granada move to quell US merger speculation

Granada Plc have rejected claims that they on the verge of a merger with a US-based company, saying transatlantic ownership was "a long way off".
Chief executive Steve Morrison was speaking following recent reports that a senior executive from Viacom – owner of NBC amongst others – had held "introductory talks" with representatives of Granada and Carlton last week.
"I think we are a long way off from a transatlantic ownership," said Mr Morrison.
"Americans are only beginning to think about it. All the talks we've had so far with the Americans were about programming collaboration."
A merger has been widely tipped after the government's draft Communications Bill contained clauses ending non-EU ownership of UK-based broadcasters. Shares in Granada Plc rose by 5.4% last week, and Carlton Communications Plc shares advanced by 3.5%, as reports of Viacom's talks filtered into the marketplace. Granada rose 6p to 117.5p and Carlton topped 241.5p – an increase of 8.25p.
However, Mr Morrison bluntly avoided comment on speculation over the prospect of renewing merger talks with fellow ITV franchise holder Carlton, saying: "I don't want to talk about Carlton."
Elsewhere, Morgan Stanley analyst Sarah Simon revised Granada's share price target, previously held at 135p, down to 126p and said that the company was "equal-weight/cautious".
Granada Plc, www.granada.co.uk
(GMcG)