Sky set to appeal ITV share decision again

BSkyB has applied for permission to make its case to the Court of Appeal in a bid to keep its 17.9% share in ITV.

In September, BSkyB failed in its attempt to overturn the Competition Commission’s original ruling that Sky must sell its controversial stake in ITV (see Sky Forced To Reduce Stake In ITV).

At the time the Competition Appeal Tribunal, lead by John Hutton, rejected Sky’s appeal outright, forcing the company to reduce its stake in the UK biggest’s commercial broadcaster to below 7.5%.

BSkyB acquired the 17.9% share for £940 million in November 2006, but it is reported to be worth just £306 million now.

ITV’s shares were pushed out of the FTSE 100 in September, significantly reducing the 135p per share that Sky originally paid.

The commercial broadcaster’s shares were trading at 35.25p today, down from yesterday’s close of 37.75p.

Last year, the Competition Commission ruled that BSkyB must reduce its stake in ITV due to concerns that it would create considerable competition issues within the UK TV market.

However, BSkyB is hoping to make another appeal to the Commission – the broadcaster confirmed it lodged an application with the tribunal this morning.

There is no set time frame for a decision by the tribunal.

BskyB: 0207 705 3000 www.sky.com