ITV broadcasters Carlton and Granada yesterday shrugged off

suggestions their planned £2.7 billion merger was in trouble due to competition concerns.

The two media giants, which together control 12 of the 15 ITV franchises, believe the deal is on track to meet its original timetable.

With the Competition Commission due to issue its report by June 25, the Financial Times said doubts over the proposed merger had increased in the City following earlier advice from the Office of Fair Trading (OFT).

The merger was referred to competition authorities by the OFT because the group would account for more than half the television advertising market.

Analysts did not regard the referral as a surprise but the FT yesterday cited a note from Lehman Brothers raising concerns the pair may have to make added concessions to the regulators.

With advertisers concerned a single advertising sales house would be anti-competitive, separation of the sales forces could be regarded by the Competition Commission as a key concession - a move the two are happy to consider.

But it has been suggested the authorities could even demand one of the companies' London television operations must be spun off.

Advice from the OFT published in March said: "It seems reasonable to conclude there might be significant competition in the London area between Carlton and Granada that would be eliminated by the merger."

A spokesman for Granada said: "The important thing for us is to get the merger through. We are working with the Competition Commission to give them all the information they want."

Under the merger proposals, Granada shareholders will take a 68 per cent stake in the new business and receive £200 million in cash.

Granada owns seven major ITV licences.

They comprise Granada, LWT, Yorkshire TV, Tyne Tees TV, Meridian, Anglia TV and Border Television.

It also makes programmes such as top soap Coronation Street, crime drama A Touch Of Frost, starring David Jason, music talent show Stars In Their Eyes and the Yorkshire-based soap drama Emmerdale.

Carlton Television owns the licence in five regions - London and LNN, Central, West Country, HTV and HTV Wales.

Its content division has made programmes including crime drama Inspector Morse and Survivor.