Carlton demands new merger terms with United

United News & Media is facing demands from Carlton Communications for improved terms to the proposed merger between the two, as the stipulation that United must now sell its prize ITV franchise, Meridian, make a deal seem less attractive.

LONDON (Brand Republic) - United News & Media is facing demands from Carlton Communications for improved terms to the proposed merger between the two, as the stipulation that United must now sell its prize ITV franchise, Meridian, make a deal seem less attractive.

The calls follow the regulatory go-ahead, given by the government on Friday, for a merger between Carlton and United or with rival Granada.

United is expected to argue that even without Meridian the combined assets of Carlton and United would still make it a dominant player within ITV. However, Carlton seems less convinced, making a possible merger with rival Granada seem like an increasingly likely outcome.

Granada has been cleared to bid for either company and if it does not bid for one of the two it is expected to demand that United sell it two of its ITV franchises or be subject to a £5.5bn hostile takeover.

The companies have three weeks in which to reach a decision on the future of the network.



Subscribe to Campaign from just £57 per quarter

Includes the weekly magazine and quarterly Campaign IQ, plus unrestricted online access.

SUBSCRIBE

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an Alert Now
Sainsbury's moves £60m ad account to Wieden & Kennedy
Share

1 Sainsbury's moves £60m ad account to Wieden & Kennedy

Sainsbury's has moved its £60m advertising account into Wieden & Kennedy, ending its 35-year-relationship with Abbott Mead Vickers BBDO.

The top 10 brands favoured by Remainers and Brexiters
Shares0
Share

1 The top 10 brands favoured by Remainers and Brexiters

Marketers can learn about our divided nation by examining the brands that appeal across the voting referendum voting split, says Emily James, chief strategy officer at Rainey Kelly Campbell Roalfe/Y&R.

Just published