Secretary of state for business John Hutton is expected to announce tomorrow that Sky should sell at least some of its 17.9% stake in ITV.
However, it has been reported that Sky, which bought the stake for £940 million (see
ITV Share Price Falls After BSkyB Acquires Stake), is preparing to appeal against the expected ruling.
ITV’s share price has fallen by almost half since Sky bought the shares in November 2006, with the satellite broadcaster looking at a possible loss of around £250 million if forced to sell.
A report in the Sunday Telegraph said that if Sky does appeal, it will focus on whether the Competition Commission’s finding’s were correct and whether the 7.5% ceiling it recommended was appropriate.
Meanwhile, the Mail On Sunday claims that Sky will attempt to claim damages from the government if forced to sell its shares at a loss.
Sky has until the end of February to appeal against the decision at the Competition Appeal Tribunal.
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