ITV shares hit new low after call for Sky to sell stake

by Daniel Farey-Jones, Brand Republic 08-Nov-07, 11:00

LONDON - ITV's share price has reached its lowest point to date, falling to a little over 90p, after it emerged that the company had called on the Competition Commission to make BSkyB sell its 17.9% stake.

After slumping 4.7% on the news yesterday to 91.3p, the share price closed at its lowest level in ITV's almost four-year existence in its current form.

The share price was 148p in February 2004, when ITV started trading on the London Stock Exchange after its creation out of the merger of Carlton and Granada.

ITV shares recovered this morning, up 1.75% to 92.9p, but have some way to go to reach the 135p level Sky paid last November when it made its surprise swoop of 17.9% of ITV.

The Competition Commission is currently considering responses to its preliminary findings that Sky's shareholding in ITV lessens competition in the media sector.

If it were to conclude Sky should have to sell its entire shareholding, then at yesterday's closing price Sky would lose £300m on its £940m investment.