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BSkyB told to sell shares in ITV | BSkyB told to sell shares in ITV |
(10 minutes later) | |
BSkyB must reduce its holding in ITV from the current level of 17.9% to below 7.5% and not take a seat on the ITV board, the government has ruled. | BSkyB must reduce its holding in ITV from the current level of 17.9% to below 7.5% and not take a seat on the ITV board, the government has ruled. |
Business Secretary John Hutton accepted the findings of the Competition Commission's investigation into ITV. | Business Secretary John Hutton accepted the findings of the Competition Commission's investigation into ITV. |
BSkyB has until Monday 25 February to lodge an appeal against the decision. | |
ITV said that it warmly welcomed the government's decision, while BSkyB said it would carefully consider the findings before deciding what to do. | |
Media row | |
On 17 November 2006, BSkyB announced that it had spent £940m buying 17.9% of ITV, but ITV's share price has fallen significantly since then. | On 17 November 2006, BSkyB announced that it had spent £940m buying 17.9% of ITV, but ITV's share price has fallen significantly since then. |
The decision was made by Business Secretary John Hutton | |
BSkyB bought the shares for 135 pence each. They closed at 72p on Monday. | BSkyB bought the shares for 135 pence each. They closed at 72p on Monday. |
At current prices, BSkyB could lose about £250m from the sale of the shares. | |
Virgin Media argued in 2006 that BSkyB only bought the stake to block a takeover of ITV. | |
But BSkyB said it had not sought to influence ITV and had only bought the shares as an investment. | But BSkyB said it had not sought to influence ITV and had only bought the shares as an investment. |
Mr Hutton has decided not to announce how long he is giving BSkyB to sell the shares. | Mr Hutton has decided not to announce how long he is giving BSkyB to sell the shares. |
The Competition Commission ruled on 20 December 2007 that BSkyB's shareholding was bad for competition and not in the public interest. | The Competition Commission ruled on 20 December 2007 that BSkyB's shareholding was bad for competition and not in the public interest. |