Wild WestLB

13 January 2003

The owner of CBS is said to covet Carlton, apparently in order to negotiate better merger terms with Granada than current management has. Don’t bank on it. Carlton shareholders really would be in luck if Viacom were optimistic enough to want to pay them a premium.

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WestLB is putting together a plan to take over UK broadcaster Carlton, according to the Sunday Express. In partnership with Viacom, the US group that owns the CBS broadcasting network, the German bank is reported to be putting together an alternative management team for Carlton. Were the takeover to succeed, the reports says that Viacom and WestLB would want to proceed with the planned merger of Carlton and fellowITV broadcaster Granada on renegotiated terms.

Carlton and Granada announced in October that they planned to merge to create a single company to run Britain's ITV network. The deal, which will need new legislation in the government's Communications Bill as well as the usual regulatory clearances, is not expected to complete before the end of this year. Under its terms, Carlton shareholders will be given 32% of the merged company, with an extra 2% in the event that the merged company's share price has doubled by 2006.

The bank has not returned calls. Carlton says it has received no bid.

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