MA
More at MediaGuardian: http://www.guardian.co.uk/media/2008/jan/29/bskyb.itv
Why was it allowed in the first place if it was so controversial?
Also, why is the potential NTL/Virgin Media purchase being used as an excuse for Sky to offset their stake? Surely if NTL/Virgin Media had bought ITV, they would have been accused of the same thing that Sky has been accused of? Why are the rules different for Sky?
Matt
Founding member
pad posted:
Quote:
The government today ordered BSkyB to cut its stake in ITV from 17.9% to below 7.5%.
Business secretary John Hutton followed the advice given to him last year by the Competition Commission that the satellite company should sell down its stake.
He also required Sky "not dispose of the shares to an associated person, not to seek or accept representation on the board of ITV and not to reacquire shares in ITV".
Sky spent �940m acquiring the shares in November 2006, at a time when cable rival NTL - now Virgin Media - was hoping to buy ITV.
ITV's share price has tumbled since Sky bought the shares - meaning that Sky is sitting on a loss of around �250m at current prices.
ITV said today that it "warmly welcomed" Hutton's decision, which was widely expected following the commission's ruling.
Business secretary John Hutton followed the advice given to him last year by the Competition Commission that the satellite company should sell down its stake.
He also required Sky "not dispose of the shares to an associated person, not to seek or accept representation on the board of ITV and not to reacquire shares in ITV".
Sky spent �940m acquiring the shares in November 2006, at a time when cable rival NTL - now Virgin Media - was hoping to buy ITV.
ITV's share price has tumbled since Sky bought the shares - meaning that Sky is sitting on a loss of around �250m at current prices.
ITV said today that it "warmly welcomed" Hutton's decision, which was widely expected following the commission's ruling.
More at MediaGuardian: http://www.guardian.co.uk/media/2008/jan/29/bskyb.itv
Why was it allowed in the first place if it was so controversial?
Also, why is the potential NTL/Virgin Media purchase being used as an excuse for Sky to offset their stake? Surely if NTL/Virgin Media had bought ITV, they would have been accused of the same thing that Sky has been accused of? Why are the rules different for Sky?