NTL confirms possible ITV merger

Cable operator ntl:Telewest has issued a statement to the stock exchange confirming it has advised ITV of an interest in a "combination transaction" and that it has set up an "initial conversation" with ITV bosses.

The statement went on to say: "This process is at a very preliminary stage and there is no assurance that these discussions will lead to any offer being made for ITV."

Todays reports of a potential merger of the two companies has set ITV shares rocketing.

Yesterday ntl:telewest confirmed it is to be renamed as Virgin Media from next year following its merger with Virgin Mobile.

ITV is also believed to have finally selected potential names for the role of its chief executive.

Reports suggest that two shortlists have been drawn up containing the names of those that have either been approached by ITV board members or by headhunters Zygos, the company handling the selection process.

Former Ofcom chief executive Stephen Carter remains a first choice candidate, with some suggesting that the board are drawing out the recruitment process out until he is free to join ITV when his gardening leave ends in the new year.

United International Pictures chief executive Stewart Till is also thought to be on the main list.

Names now believed to be on the second list include former ITV chief executive Richard Eyre, Sky Networks managing director Dawn Airey and Channel 4 chief executive Michael Jackson.

Separately, ITV is believed to be considering the launch of a movies channel on Freeview showing content obtained through its multi-million-pound deal with Warner Bros and through a deal with MGM for the James Bond back catalogue.

ITV4 controller Steve Arnell is believed to developing the ITV Movies project.