BSkyB must cut its stake in rival ITV, government says

29-01-2008

BSkyB must cut its stake in rival ITV, government says
British Sky Broadcasting (Sky) has been told by the government that it must decrease its shareholder stake in ITV.

Sky's acquisition of a 17.9 per cent share in ITV was found to be detrimental to the public interest in virtue of its impact on competition.

Business secretary John Hutton decided that the transaction would result in a "substantial lessening of competition within the UK market for all television".

The final decision stated that it would impose the remedies recommended by the Competition Commission after a "detailed investigation".

The decision requires Sky, owned by media magnate Rupert Murdoch, to divest itself of shares in ITV to a level below 7.5 per cent.

"ITV warmly welcomes the secretary of state's decision to require BSkyB to divest its shareholding… We believe this decision is in the best interests of the overwhelming majority of our shareholders," ITV said in an official statement.

Sky also acknowledged the decision: "BSkyB Group plc notes today's announcement by the secretary of state for business, enterprise and regulatory reform in respect of Sky's minority shareholding in ITV plc.

"The company will give careful consideration to the announcement and confirm any further steps in due course," the broadcaster said.

Shares in ITV have risen 2.36 per cent in the day's early trading to 73.70p after the decision was announced. Sky's share price has risen a little over half a percentage point to 534p.

Bookmark with:
Bookmark with: Digg Digg Bookmark with: Del.icio.us Delicious Bookmark with: Reddit Reddit Bookmark with: StumbleUpon StumbleUpon Bookmark with: Google Google Bookmark with: Technorati Technorati Bookmark with: Netvouz Netvouz

Latest News:

Search News
News Front Page
Accountancy / Tax
Advertising / PR
Armed Forces
Automotive
Aviation / Aerospace
Banking / Finance
Charities / Voluntary
Childcare / Youth
Construction / Property
Customer Services
Education / Training / Teaching
Emergency Services
Engineering / Electronics
Entertainment / TV / Theatre
Graduate Roles
Health / Beauty
Hotel / Catering / Restaurants
HR / Recruitment
Insurance / Pensions
International / Overseas
IT / Internet
Legal
Management / Business
Manufacturing / Industry
Media / New Media / Creative
Medical / Healthcare
Pharmaceutical Industry
Public Sector
Retail / Wholesale
Sales / Purchasing / Marketing
Science / Technology
Secretarial / PA / Admin
Skilled / Semi-skilled Manual
Telecommunications
Transport / Logistics
Travel / Tourism / Leisure