Capital agrees Border carve-up

Capital will keep Border's radio assets

Media and hotels group Granada has agreed a deal to buy the television business of Border TV for £50m.

The deal is dependent on a £146m take-over by Capital Radio and will see that company hang on to Border's radio assets.

The Carlisle-based group last week approved the Capital Radio bid in the face of a £141m hostile take-over by Scottish Radio Holdings.

The carve-up will see Granada buy Border's ITV regional franchise, which broadcasts to southern Scotland and the north of England, while Capital will be left with the company's radio assets.

Radio assets

These are four radio stations - three of which are branded as Century Radio and operate in north east and north west England and the East Midlands, while the fourth, Sun FM, broadcasts in Sunderland.

They will be added to Capital's existing Capital FM and Capital Gold in London and its 14 other commercial stations across the UK, including Invicta FM in Kent, BRMB FM in Birmingham and Red Dragon in Wales.

Capital Radio chief executive David Mansfield said: "This agreement further strengthens our bid for Border.

Shareholder value

"It protects the long term future of Border's television business with a group which is committed to the development of television assets and enables Capital to be totally focused on doing what we do best - building successful radio businesses."

Charles Allen, chief executive of Granada said: "This is a good deal for our shareholders and reinforces our determination to be at the forefront of ITV consolidation."

Granada already holds ITV licences for London, Northwest, Yorkshire and Tyne Tees areas.

It also owns half of digital broadcaster On Digital with Carlton Communications.