NEWLY-created ITV plc received a boost from investors as shares in the UK's largest commercial broadcaster got off to a strong start.

The stock, which has been created by the merger of Granada and Carlton Communications, rose five per cent to 148p on the first day of trading.

City analysts helped the performance by starting with upbeat positions on the £5.9bn-valued company. They included investment bank UBS, which said it was confident ITV could benefit from cost savings and the economic upturn.

Aidan Dunstan, from Laing and Cruickshank, said: "With the general market drifting downwards, the performance of ITV on its debut has been encouraging.

"With a market value of about £6bn, the company's shares have gone straight into the FTSE 100, so there will be plenty of interest both from institutions and retail investors, while many tracker funds which mirror the FTSE 100 will be obliged to buy into ITV immediately."

He said: "The company is hoping to deliver over £100m of cost savings from the merger of Granada and Carlton, while there is also speculation of a possible takeover from an overseas media company."

The long-awaited tie-up has brought together all the former ITV regional companies, except Scottish, Grampian and Ulster.

Chief executive Charles Allen said that ITV was well placed for growth and performing at its best level for ten years.

Despite the debacle of Granada and Carlton's foray into the digital market with ITV Digital, Mr Allen said the company would develop a package of outlets for the future, including ITV3.

He said the Granada-Carlton merger had gone well, despite the shareholder revolt which ousted Carlton chairman Michael Green in October.

Mr Allen said: "We have got a management team in place and we are very focused on continuing to deliver on-screen for our viewers. We are actually performing better than we have done for ten years and the merger really does give us the opportunity to deliver for viewers, advertisers and shareholders."