NTL Pulls Plug On ITV Bid

Cable firm NTL has pulled the plug on its bid for ITV and submitted an official complaint to the Office of Fair Trading over BSkyB’s acquisition of an almost 18% stake in Britain’s biggest commercial broadcaster.

NTL has said that the satellite broadcaster now has a “material influence” over the terrestrial network, having previously submitted a complaint to regulator Ofcom, which is currently investigating BSkyB’s stake in ITV (see Ofcom To Discuss BSkyB’s ITV Acquisition).

ITV’s board rejected a bid by NTL (see ITV Board Rejects NTL Merger Bid), shortly after BSkyB announced its shock move (see Branson Bites Back At Sky’s Swoop On ITV). Major NTL shareholder Sir Richard Branson was less than pleased with the satellite TV firm after the news, describing BSkyB as an “800lb gorilla” influencing ITV’s board and that the acquisition damaged the plurality of the British media (see BSkyB’s Acquisition Of ITV Not In The Public Interest, Says NTL).

Earlier this week, BSkyB chief executive, James Murdoch, said his company is a long-term investor in ITV that is keen to see the business grow, and that the move was not intended to be a spoiler for NTL’s bid (see BSkyB Chief Exec Defends Company’s Swoop On ITV Shares).

Under City rules NTL cannot re-enter the fray for another six months, but the cable group said it could once again jump in if ITV’s situation changed, such as if BSkyB sold its stake in ITV, if a third party made a bid for the broadcaster; or if ITV welcomed NTL back to the table.

NTL: 01256 752000 www.ntl.com ITV: 020 7843 8000 www.itv.com