UK's Channel 4 says Five merger not way forward

LONDON, Jan 20 (Reuters) - A merger of Britain's Channel 4 television with channel Five, owned by RTL Group AUDK.LU, is not the way forward for public service broadcasting in Britain, Channel 4's chief executive said on Tuesday.

Britain's Communications Minister Patrick Carter and media regulator Ofcom are expected to announce plans soon to reform public-service television to help it cope with falling revenues.

In an article for the Financial Times on Tuesday, Channel 4 chief executive Andy Duncan said a merger with Five "would not deliver the structural and strategic change needed."

Duncan indicated he preferred a link-up with the BBC's commercial arm, BBC Worldwide.

"The future must be about maximising the value of our content. That is why partnership discussions the BBC itself proposed between Channel 4 and BBC Worldwide should be allowed to flourish to their fullest extent," he said.

The chief executive of European broadcaster RTL argued on Monday in favor of a merger between Channel 4 and Five.

RTL is owned by Germany's Bertelsmann [BERT.UL], Europe's largest media group, while Channel 4 is publicly owned but commercially funded.

The Guardian newspaper reported on Saturday that the heads of Channel 4 and Five had held secret merger talks, although it said they were unlikely to lead to a deal.

Channel 4 has announced plans to cut jobs and spending in the face of the global economic downturn.

The channel, home to shows such as "Big Brother" and "Hollyoaks," has seen its advertising revenues fall in recent years, along with other TV stations. (Reporting by Adrian Croft; editing by Gary Crosse)