Following today's news of Carlton and Granada being in "advanced merger talks," the pair have released details of their tentative agreement.

They said that the following had been agreed "in principle," but added that there was "no assurance that final agreement will be reached," promising a further announcement "in due course."

• Granada shareholders will receive 68 percent of the equity and £200 million of cash on completion.
• Carlton shareholders will receive 32 percent of the equity, upon completion, potentially increasing to 34 percent in 2006 dependent on the achievement of a share price of the merged group equivalent to 140 pence per Granada share and on achievement of an agreed earnings target.
• Carlton intends to pay an unchanged final dividend for the year ended 30 September 2002 of 5.0 pence per share.
• Following completion, Michael Green will become Chairman of the merged group and Charles Allen will be Chief Executive.
• In addition three non-executive directors from each company will join the board of the merged group.