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Carlton buys Granada unit
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October 24, 2000: 6:25 a.m. ET
British TV operator to pay rival $262M, transfer Meridian stake
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LONDON (CNNfn) - British TV operator Granada Media PLC and rival Carlton Communications PLC said Tuesday they agreed to reshuffle some of their regional broadcasting holdings, helping Granada Media to comply with antirust conditions attached to its takeover of the bulk of United News & Media PLC.
Carlton will pay £181 million ($262 million) for the broadcasting interests of Granada Media's HTV unit, a commercial TV station for Wales and the west of England, and will transfer its 20 percent stake in Meridian Broadcasting Ltd. to Granada Media.
That will lift Granada Media's ownership of Meridian, which broadcasts to the south east of Britain, to 99.9 percent, and bring its share of advertising revenue generated by the U.K.'s Independent Television (ITV) network to 51 percent, the company said.
 Carlton (CCM) shares fell 0.9 percent to 532 pence while Granada (GME) shares were unchanged at 385 pence.
Granada was obliged to sell some of its regional ITV units following its £1.75 billion takeover in July of rival United News & Media PLC's (UNWS) broadcasting interests, including the majority of Meridian, to comply with British regulations limiting audience share to 15 percent.
Granada will keep HTV's Bristol-based program production business, which includes units specializing in children's shows and wildlife programming, the company said.
Granada said it will broadcast to some 35 million viewers following the acquisition of Meridian.
Carlton said that after its purchase of HTV, which reaches 4.5 million people, its stations would account for some 40 percent of ITV net advertising revenue.
The companies said the deal would allow the development of their pay-TV joint venture ONdigital.
"We are now well placed to optimize the value of ITV and ONdigital," Granada Chairman Charles Allen said in a statement.
Meridian recorded a profit before tax of £30 million in the year ended Dec. 31, 1999, Carlton said. HTV's operating profit for the same period was £14 million, said Granada.
Granada Media was created when Granada Group (now called Granada Compass PLC) carried out a partial divestment of its media interests, listing its media unit on the stock market on July 11. Granada Compass still owns about 80 percent of the media company. 
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Carlton
Granada Media
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