Sky sells 10.4% ITV stake at £350m loss

BSkyB has sold the majority of its 17.9% stake in ITV for £196 million, at a loss of around £350 million.

The satellite broadcaster placed 10.4% of its stake with Morgan Stanley at 48.5p per share, although plans to keep the remaining 7.5% stake.

In a statement, the company said: “Sky intends to retain its residual 7.5% investment in ITV for the medium term and to remain a committed shareholder of ITV.”

Morgan Stanley sold the shares to institutions for 49.5p.

Sky was ordered to reduce its stake in ITV to less than 7.5% by the court of appeal last month following a two-year legal battle.

The Rupert Murdoch-owned pay TV operator bought its 17.9% share for £940 million in November 2006 to block a potential takeover of ITV by Virgin Media.

However, the Competition Commission since ruled that Sky’s stake in the commercial broadcaster gave it too much influence in the UK media market, which was not in the public interest.