Shares in ITV have dropped 5% after BSkyB acquired a 17.9% stake in the broadcaster for £940 million.
The move by Sky now makes a possible takeover by NTL of ITV (see
NTL Telewest Could Merge With ITV) unlikely.
The BBC quotes Sir Richard Branson, NTL’s biggest shareholder, as saying of the Sky deal: “BSkyB’s move is a blatant attempt to distort competition even further by blocking any attempt to create a strong and meaningful competitor.
“BSkyB is positioned to strongly influence ITV’s operations in a manner that favours BSkyB’s long-term plans rather than the interests of the other 82% percent of ITV shareholders who weren’t offered a sweetheart deal on Friday.”
Branson became a 10.5% shareholder in NTL after selling Virgin Mobile to the company earlier in the year.
Current media ownership rules mean that BSkyB cannot own more than 20% of ITV.
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