BSKYB was today told to cut its controversial shareholding in ITV from its current level of 17.9 per cent to less than 7.5 per cent – a move which could cost it up to £250 million.
The Secretary of State for Business and Enterprise, John Hutton, ordered the reduction in the wake of the Competition Commission's ruling in December that BSkyB's shareholding was bad for competition and not in the public interest.
The satellite
broadcaster's move effectively blocked cable group NTL – since relaunched as part of Virgin Media – from buying ITV.
As well as ordering BSkyB not to dispose of the shares to an associated party to try to re-acquire shares in ITV, Mr Hutton also told the broadcaster it would not be allowed a seat on ITV's board.
BSkyB spent £940 million buying into ITV in November 2006. But the stake is now worth less than £700m because of a drop in value in ITV shares.
Mr Hutton said he had decided to impose the remedies recommended by the Competition Commission to address the "substantial lessening of competition" identified in its report.
BSkyB now has up to four weeks to contact the competition appeal tribunal if it decides to appeal.
ITV said it warmly welcomed Mr Hutton's decision. "We believe this decision is in the best interests of the overwhelming majority of our shareholders," it added.
BSkyB said it noted the decision and added: "The company will give careful consideration to the announcement and confirm any further steps in due course."
The full article contains 265 words and appears in Edinburgh Evening News newspaper.
