BSkyB can challenge ITV stake ruling

BSkyB has won the right to appeal the Competition Commissions ruling it should sell off the majority of its stake in rival ITV based on the fact that the purchase created an anti-competitive merger.

BSkyB has won the right to appeal the Competition Commission’s ruling it should sell off the majority of its stake in rival ITV based on the fact that the purchase created an anti-competitive merger.

The Commission’s ruling in January 2008 said that Sky’s position as the largest shareholder in ITV prevents the commercial broadcaster from pursuing an independent competitive strategy.

Sky became ITV’s largest shareholder in November 2006 when its then chief executive, James Murdoch, spent £960m, stopping a putative £4.7bn bid for ITV by cable company NTL, now Virgin Media.

It sought leave to appeal the ruling because it felt the order to reduce its stake from 17.9 % to below 7.5% is a “disproportionate” and “unreasonable” remedy.

Sky had offered to give up all voting rights in respect of its shareholding, which it says would have fully addressed concerns arising from Sky’s ability to vote on shareholder resolutions, but the measure was rejected by the Commission.

Since Sky bought its stake the value of ITV shares have crashed and Sky stands to lose millions of pounds if forced to divest.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

If you are looking for our Jobs site, please click here