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| Version 1 | Version 2 |
|---|---|
| Branson challenges BSkyB over ITV | Branson challenges BSkyB over ITV |
| (about 16 hours later) | |
| Sir Richard Branson has called on the Office of Fair Trading to intervene after satellite broadcaster BSkyB bought a stake in ITV. | Sir Richard Branson has called on the Office of Fair Trading to intervene after satellite broadcaster BSkyB bought a stake in ITV. |
| BSkyB spent £940m on 17.9% of ITV shares late on Friday - a move widely seen as a way of scuppering a move by NTL to take over ITV. | BSkyB spent £940m on 17.9% of ITV shares late on Friday - a move widely seen as a way of scuppering a move by NTL to take over ITV. |
| Sir Richard, NTL's biggest stakeholder, said BSkyB's move was "a blatant attempt to distort competition". | Sir Richard, NTL's biggest stakeholder, said BSkyB's move was "a blatant attempt to distort competition". |
| But BSkyB has hit back, saying it had done nothing wrong. | But BSkyB has hit back, saying it had done nothing wrong. |
| Ownership restrictions | Ownership restrictions |
| Sir Richard said he may also complain to the European Commission and regulator Ofcom. | Sir Richard said he may also complain to the European Commission and regulator Ofcom. |
| He became a 10.5% shareholder in NTL when he sold Virgin Mobile to the firm earlier this year. | He became a 10.5% shareholder in NTL when he sold Virgin Mobile to the firm earlier this year. |
| Earlier this month, NTL said it had approached ITV about combining the two companies. The offer was reported to be more than £5bn. | Earlier this month, NTL said it had approached ITV about combining the two companies. The offer was reported to be more than £5bn. |
| Sir Richard seems to believe that he and his partners in NTL have a unique right to acquire ITV BSkyB href="/1/hi/business/6163846.stm" class="">Q&A: BSkyB, ITV and NTL | |
| "BSkyB's move is a blatant attempt to distort competition even further by blocking any attempt to create a strong and meaningful competitor," Sir Richard said. | "BSkyB's move is a blatant attempt to distort competition even further by blocking any attempt to create a strong and meaningful competitor," Sir Richard said. |
| "BSkyB is positioned to strongly influence ITV's operations in a manner that favours BSkyB's long-term plans rather than the interests of the other 82% percent of ITV shareholders who weren't offered a sweetheart deal on Friday." | "BSkyB is positioned to strongly influence ITV's operations in a manner that favours BSkyB's long-term plans rather than the interests of the other 82% percent of ITV shareholders who weren't offered a sweetheart deal on Friday." |
| Current UK media ownership rules mean the satellite broadcaster is prevented from controlling more than 20% in ITV. | Current UK media ownership rules mean the satellite broadcaster is prevented from controlling more than 20% in ITV. |
| And BSkyB said that because its stake was below this threshold, it was entitled to invest. | And BSkyB said that because its stake was below this threshold, it was entitled to invest. |
| "Sir Richard seems to believe that he and his partners in NTL-Telewest have a unique right to acquire ITV," a company statement said. | "Sir Richard seems to believe that he and his partners in NTL-Telewest have a unique right to acquire ITV," a company statement said. |
| 'Legal advice' | 'Legal advice' |
| Mr Branson's spokesman, Will Whitehorn, said earlier that that BSkyB had taken a stake in ITV "in order to prevent a transformational deal that would have increased competition in the UK". | Mr Branson's spokesman, Will Whitehorn, said earlier that that BSkyB had taken a stake in ITV "in order to prevent a transformational deal that would have increased competition in the UK". |
| "This is a blatant breach, if not of the broadcasting legislation, then of the Enterprise Act," he said. | "This is a blatant breach, if not of the broadcasting legislation, then of the Enterprise Act," he said. |
| Mr Whitehorn added that BSkyB - which is 39% owned by Rupert Murdoch's News Corporation - had made it clear it "did not intend to be a passive investor". | Mr Whitehorn added that BSkyB - which is 39% owned by Rupert Murdoch's News Corporation - had made it clear it "did not intend to be a passive investor". |
| But an unnamed BSkyB director told the Financial Mail it had taken large amounts of legal advice before amassing the stake in ITV. | But an unnamed BSkyB director told the Financial Mail it had taken large amounts of legal advice before amassing the stake in ITV. |
| "We are confident we are protected against any Branson-style attack," he said. | "We are confident we are protected against any Branson-style attack," he said. |
| Earlier reports suggested Germany's RTL may also make a bid - though those rumours appear to have cooled. | Earlier reports suggested Germany's RTL may also make a bid - though those rumours appear to have cooled. |
| ITV has been under pressure after being hit by declining advertising revenue. It is also without a chief executive. | ITV has been under pressure after being hit by declining advertising revenue. It is also without a chief executive. |