Leaderless ITV at war with the Scots

ITV (LSE: ITV.L - news) continued its search for new leadership and found itself embroiled deeper in a cross-border legal war with its devolutionary Scottish counterpart.

The names of several well-respected City figures, including senior bankers, were dragged into the frame as potential chairmen of the UK's largest commercial broadcaster.

Robert Wigley, a former senior banker with Merrill Lynch (NYSE: MER - news) and now chairman of Yell, the directory publisher, spoke to the board this week, according to a friend and another person familiar with the company's actions.

But others linked to the job included Carphone Warehouse (LSE: CPW.L - news) chairman John Gildersleeve, with a strong background in consumer companies. He was previously an executive director of Tesco (LSE: TSCO.L - news) , and was also chairman of EMI (LSE: EMI.L - news) until late 2007, as well as tobacco group Gallaher (LSE: GLH.L - news) .

The ITV process for finding a successor to Michael Grade, the executive chairman, has been dogged by unwelcome publicity. Mr Wigley has declined to comment, as did ITV.

Another City figure named as a possible candidate was Robert Swannell, who is soon to retire as vice-chairman of Citigroup (NYSE: C - news) in Europe and is chairman of the retailer HMV.

However, he has not had any involvement with the process, according to a person with knowledge of it.

At the same time, a legal row between ITV and STV, the owner of the Scottish and Grampian franchises of ITV, is escalating. STV issued a third-quarter trading statement, indicating it was preparing its retaliation in the battle.

ITV is suing STV for £15m to £20m over alleged non-payment of unpaid programme-making costs, but the Scottish company, which has taken an increasingly independent approach to its own schedules, shunning more and more of the English-produced timetable, says now that it is owed £35m by ITV. The claim centres on the way in which the larger group collected advertising revenues over a six-year period. ITV denies the claim.

In a statement, Rob Woodward, chief executive, said: "We have explored numerous routes to engage with ITV, but we have been left with no choice but to seek protection through the courts and we are confident that our position will be upheld.

He added: "Although we continue to operate in a challenging economic climate, we are beginning to see signs of an improvement in the market."

ITV reported its first growth for a year and best advertising figures since 2007 yesterday, but demurred from calling the bottom of the advertising market.

Its trading statement suggested net advertising revenues for December would be up 4 per cent on the same month last year.

As well as the unexpected improvement in revenues since an update only last month, the company also reported the early repayment of £75m in debt.

The resurgence in ad spending is being driven mainly by food retailers, cosmetics groups and telecoms companies.