Granada's 'hysterical' chief lashed

By LUCY FARNDON
Updated:

 

CARLTON chief executive Gerry Murphy launched a stinging attack on his Granada counterpart Charles Allen, for appealing to the Prime Minister to rush through legislation on cross-media ownership that would pave the way for a single ITV giant.

Dispelling any illusions that ITV's big two would meekly merge, Murphy accused chairman Allen of 'hysterical scaremongering' for arguing that a delay to law changes may make ITV companies vulnerable to takeover as well as threaten ONdigital, their jointly-owned digital TV unit.

'We disagree fundamentally that a slippage of a few months in the Communications Bill timetable is unduly threatening,' said Murphy. 'Hysterical scaremongering is really not helpful.'

Carlton is furious that Granada wrote to Tony Blair last week without its knowledge. A source said: 'We want to pour scorn on the letter. There is a real depth of anger here.'

This is a warning that Carlton may not yield its independence even when regulators allow. Carlton said it 'does not believe merging the TV interests of Granada and Carlton is either inevitable or necessary'. It added: 'It is perfectly feasible to operate ITV as a partnership, providing both sides understand the meaning of partnership.'

Granada said it remained committed to collaboration. It fell 6 1/2p to 141 1/2p amid warnings that advertising faces its worst slump in TV history. Carlton fell 15p to 319p, a five-year low.

Some in the City are amused that Granada, so often an opportunistic predator, is now complaining about its own vulnerability. Sir Rocco Forte, whose Forte Hotels was taken over by Granada in a bitter battle, said: 'Poor chaps. They should learn to take their own medicine.' Sir Rocco, who has built up a new group, RF Hotels, added: 'They took advantage of a difficult period to bid for us. Why shouldn't other people do the same to them?'

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