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| Version 3 | Version 4 |
|---|---|
| BSkyB told to sell shares in ITV | BSkyB told to sell shares in ITV |
| (20 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 study into BSkyB's stake. | Business Secretary John Hutton accepted the findings of the Competition Commission's study into BSkyB's stake. |
| BSkyB has until Monday 25 February to lodge an appeal against the decision. | 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. | ITV said that it warmly welcomed the government's decision, while BSkyB said it would carefully consider the findings before deciding what to do. |
| Paper loss | Paper loss |
| 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 class="" href="http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/shares/3/26298/intraday.stm">ITV share price class="" href="http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/shares/3/23154/intraday.stm">BSkyB share price | |
| BSkyB bought the shares for 135 pence each. They opened on Tuesday up 1p at 73p. | |
| At current prices, BSkyB could lose about £250m from the sale of the shares. | At current prices, BSkyB could lose about £250m from the sale of the shares. |
| 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. |
| Media row | Media row |
| Virgin Media argued that BSkyB only bought the stake to block a takeover of ITV. | Virgin Media argued 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. |
| The shares were bought at a time when ITV was struggling without a chairman and NTL, which has since been rebranded as Virgin Media, was considering a takeover bid. | The shares were bought at a time when ITV was struggling without a chairman and NTL, which has since been rebranded as Virgin Media, was considering a takeover bid. |
| Four days after BSkyB bought the stake, ITV rejected NTL's approach saying it undervalued the company. | Four days after BSkyB bought the stake, ITV rejected NTL's approach saying it undervalued the company. |
| A week after that, ITV announced that Michael Grade was leaving the BBC to become its new chairman. | A week after that, ITV announced that Michael Grade was leaving the BBC to become its new chairman. |
| The Competition Commission ruled in December last year that BSkyB's shareholding was bad for competition and not in the public interest. | The Competition Commission ruled in December last year that BSkyB's shareholding was bad for competition and not in the public interest. |