TV game show

6 March 2003

A widening deal spread reveals the beginning of doubts about the UK broadcaster’s merger with peer Granada, as a regulatory ruling looms. The regulators are only one reason to worry, though. Granada investors could be just as much of a threat to the deal.

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Britain's Office of Fair Trading is expected to announce in the next few days that it will refer the proposed merger between broadcasters Carlton and Granada to the Competition Commission for a full investigation, people close to the deal say.

Since the start of February 2003, shares in Granada have fallen from 67p to 52p, and shares in Carlton from 116p to 79p. If Carlton had been valued exactly in line with the terms of the two broadcasters' proposed merger, its shares would have been at 116p on 3 February, and at 84p on 6 March. The difference implies a widening of the deal spread from zero to 7%.

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