Granada Media, the media arm of the UK's Granada Group, plans to raise up to $2.25 billion through its upcoming floatation, the company revealed on Monday.

Granada Media, which is demerging from its media and hospitality parent, said the share issue could value the new company at more than $10 billion.

The offering is seen partly as a way to raise cash for a bid for either Carlton Communications or United News & Media, which are in the process of merging.

Granada chief executive Charles Allen, who will head Granada Media, sets off on a two-week roadshow on Tuesday to attract investors to the share offer.