BSkyB must sell ITV stake, says Tribunal

by Emma Barnett, Media Week 29-Sep-08, 16:45

LONDON - The Competition Appeal Tribunal has backed the Competition Commission's original ruling that BSkyB must sell down its stake in ITV from 17.9% to below 7.5%.

The Commission ruled last year that BSkyB must reduce its stake, a decision endorsed by John Hutton, the Secretary of State for Business, John Hutton.

The Tribunal's dismissal of Sky's appeal will inevitably trigger a bidding war for the stake in the UK's biggest commercial broadcaster. Previous interested parties included Big Brother producer Endemol.

BSkyB purchased the 17.9% stake in November 2006 for £940m, but it is now believed to be worth only £306m.

The satellite broadcaster has been forced to sell the majority of its 17.9% stake due to the concern that its shareholding created a considerable lessening of competition within the UK TV market.

Last week ITV was given permission by Ofcom to scale back its regional news output, giving it potential savings of £40m per annum.

More to follow...