ITV’s submission to the Competition Commission asks that BSkyB is forced to dispose of its entire 17.9% stake, as it gives the satellite broadcaster a “material influence” in ITV’s plans for future investments.
According to ITV’s submission, the “only remedy” to the problem of Sky’s influence over its own decisions on future investments is the complete divestment of the stake.
The broadcaster goes on to argue that other measures, including behavioural remedies or making Sky reduce its shareholding to 9.9% would not be effective.
It adds that if the Commission decided on a partial divestment, making Sky reduce its stake to 4.9% would begin to address its concerns.
ITV said: “In particular, neither behavioural remedies nor a divestment to 9.9% would satisfactorily address the heads of material influence identified by the Competition Commission.
“ITV is also concerned that a reduction in BSkyB’s stake to 4.9% would not address all of the heads of material influence. However, if the Competition Commission were minded to propose a partial divestment, a reduction to 4.9% (accompanied by a prohibition on seeking or accepting board representation) would at least begin to address ITV’s concerns and would have a sounder analytical base than a reduction to 9.9%.”
ITV’s submission to the Commission comes as part of a consultation looking at how it should enforce its previous conclusion that Sky’s stake is against the public interest (see Sky Could Be Forced To Sell ITV Stake).
Sky’s submission saw the satellite broadcaster offer to give up some of its voting rights in order to hang on to its 17.9% stake (see Sky Could Give Up Some ITV Voting Rights).
The Competition Commission is scheduled to hand over a full report on the matter to John Hutton, secretary of state for business, enterprise and regulatory reform, by early December.
Related Links
