Granada show increased interest in Ireland's TV3

In the wake of ITV giants Carlton and Granada's merger plans finally becoming official, reports have surfaced of the latter's interest in expanding their stake in Irish independent broadcaster, TV3.

Granada currently control 45% of the channel, and have first option on acquiring another significant stake should it become available, which is likely as Canadian company CanWest, who also own 45%, are known to be seeking to restructure a €2.7 billion debt.

Although no official statement has been made by any the parties involved, Granada Chairman Charles Allen has expressed his happiness with the TV3 investment and his eagerness to expand on it.

CanWest also control 29.9% of UTV, and unconfirmed speculation is mounting that Granada may also seek to acquire this stake as part of a general consolidation of ITV.

The last 10% of TV3 is owned by a group of Irish investors linked to the Irish rock brand U2. They include Paul McGuinness, the band's manager, James Morris, who owns the Windmill Lane recording studio where U2 have recorded many of their albums, and Osmond Kilkenny, the band's former accountant.

(GB)