Shares in ITV fell briefly below 60p for the first time earlier today, following the stock’s fall to a closing low last night.
This morning, the share price fell as low as 59.7p, down 1.6% on last night’s close of 60.7p, before increasing to 60.1p just after 11.30am.
Over the past six months, the FTSE 100 index has declined by 11%, while ITV has fallen 39%.
It is unlikely that a private equity firm would be willing to mount a takeover of ITV, despite it now being worth less than £2.5 billion, because of the ongoing credit crunch.
The share price has also been affected by the expectation that Sky will be forced to sell its 17.9% stake in the broadcaster.
Sky has lodged an appeal against the competition regulator’s ruling ordering it to reduce its stake to below 7.5% (see Sky Confirms Legal Challenge To ITV Stake Ruling).
If Sky loses the appeal and is forced to sell its shares, it could make a loss of around £300 million, having paid 135p per share in November 2006 (see ITV Share Price Falls After BSkyB Acquires Stake).
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