Sky Forced To Reduce Stake In ITV

BSkyB has failed in its attempt to overturn the Competition Commission’s original ruling that Sky must sell its controversial 17.9% stake in ITV.

The Competition Appeal Tribunal, lead by John Hutton, rejected Sky’s appeal outright, forcing the company to reduce its stake in the UK biggest’s commercial broadcaster to below 7.5%.

The Tribunal’s ruling is expected to spark a bidding war for Sky’s share in ITV, with interested parties including the Big Brother producer Endemol.

BSkyB acquired the 17.9% share for £940 million in November 2006, but it is reported to be worth just £306 million now.

This month, ITV’s shares were pushed out of the FTSE 100, significantly reducing the 135p per share that Sky originally paid.

The Competition Commission ruled last year that BSkyB must reduce its stake in ITV due to concerns that it would create considerable competition issues within the UK TV market.

Sky is understood to be considering another appeal.

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