US media giant Viacom has signalled that it may be interested in buying the UK's ITV once restrictions on foreign ownership of British broadcasters are lifted.

Viacom chief executive Sumner Redstone told an audience of British TV executives on Thursday that while he had no UK acquisition plans at present, ITV represented a "great opportunity."

"We'll continue to monitor developments very closely. As they say in our business: 'Stay tuned,'" Mr Redstone said.

The government's Communication Bill, due to be published next month, is expected to include proposals to drop regulations banning foreign buyouts of UK television broadcasters.

Takeover trail

Relaxing the restrictions is likely to trigger a wave of offers for British commercial broadcasters from abroad.

Viacom, owner of Paramount film studios and the MTV music channel, has said it is on the lookout for potential acquisitions in order to boost earnings growth.

US media giant AOL Time Warner has also signalled that it could bid for British TV firms once the Communications Bill becomes law.

ITV has become a prime candidate for a foreign takeover after Carlton and Granada - the two companies which control the channel - agreed to merge last month.

That merger, which would create a single company controlling about 50% of the television advertising market, still has to be approved by UK competition watchdogs.

Granada shares were down 2.5p at 78p while Carlton shares were off 4.5p at 131p in a market that was slightly lower overall early on Friday afternoon.