Carlton and Granada in 'talks' with Viacom

It has been reported that the number two at US media giant Viacom has been in London to meet representatives from Granada and Carlton.
Mel Karmazin was said to have held "introductory talks" with the two largest companies in the ITV network - as well as engaging in meetings at Capitol Radio during his visit.
Carlton chairman Michael Green, Chief Executive Gerry Murphy and Finance Director Paul Murray met with Granada Chairman Charles Allen and Chief Executive Steve Morrison at a lunch attended by Mr Karmazan, according the Financial Times.
Viacom is well-placed to enter the UK market, with CBS releasing figures claiming that it had increased ad revenues by $600 million to $1.9 billion on last year's upfront sales – which represents about 80% of its capacity. Last year, that figure stood at 66%.
Viacom has a reputation for pursuing aggressive business strategies, especially so after chief executive Summer Redstone's robust defence of tactics over promoting subsidiary video-rental chain Blockbuster. Mr Redstone gave his evidence last week at a US district court, defending his company's actions in a suit alleging Viacom's complicity, along with other studios, of impropriety relating to anti-trust laws.
"We were going to compete as aggressively as possible. That was our right," he said.
Many foreign competitors are eyeing the UK market following provisions in the draft Communications Bill designed to ease regulations on non-EU countries acquiring broadcast licences in the UK. Other networks that have expressed interest in UK licences include NBC and News Corp.
In the government's summary of the Bill, it declares its intention to "abolish all rules on foreign ownership, to secure the investment and skills that a more open market offers".
The Bill also stipulates that within individual media markets (TV, radio and newspapers) deregulation can promote "healthy competition", as long as minimum guarantees of plurality remain.
Despite low share prices, one source rubbished the suspicion that major corporations will buy up large sections of UK-based broadcasters. "The idea they're just going to get their cheque books out is nonsense," said the source.
Granada and Carlton had been hoping to take advantage of rule changes blocking a merger between the two companies. But talks were suspended during the crisis affecting ITV Digital.
Following news of Mr Karmazin's meeting with the ITV licence holders, Granada's shares rose over 5.4% and Carlton jumped 3.5% by Monday lunchtime.
Granada, www.granada.co.uk
Carlton, www.carltonplc.co.uk
(GMcG)