Sky sells 10.4% of ITV stake for a loss
British Sky Broadcasting has sold 10.4% of its shares in ITV to institutional investors.
The company recently lost an appeal to the Competition Commission to retain its 17.9% stake in ITV. It bought the shares in 2006 as a strategic move to head off any potential bid for ITV from Virgin Media or others.
However, it was ruled that the shares gave Sky undue influence over ITV and it was ordered to reduce its stake to below 7.5%
It originally bought the shares for £545m and has sold then for £196m, or 48.5 pence per share.
Sky says that it intends to retain its residual 7.49% investment in ITV for the medium term and to remain a committed shareholder of ITV.
Virgin Media has filed its own appeal against the CC ruling, requesting Sky reduce its stake by a greater margin than the CC proposal.
