BSkyB offloads 10.4-per cent stake in ITV for £196 million

Bowing to the UK Court of Appeal ruling, satellite broadcaster British Sky Broadcasting Group Plc (BSkyB), partially owned by media baron Rupert Murdoch's News Corp, has sold the majority of its shareholding in rival ITV Plc for approximately £196 million ($307 million).

BSkyB said in a statement that the company has successfully placed a shareholding of approximately 10.4 per cent in ITV in accordance with the final undertakings given by BSkyB to the secretary of state for businesses, innovation and skills relating to its investment in ITV.

Upholding the UK Competition Commission's earlier ruling, the Court, about a fortnight ago ordered BSkyB to reduce its stake in ITV from 17.9 per cent to below 7.5 per cent to help competition in the media sector.

The ruling brought an end to the three-year long legal battle by BSkyB to hold on the ITV stake it acquired in 2006, in a surprise move to block the takeover of ITV by cable operator NTL Inc, now operating as Virgin Media Inc. The merger of the two could have created a stiff competitor for BSkyB. (See: BSkyB loses battle as court orders firm to cut ITV stake)

Approximately 404.4 million ITV shares were sold to Morgan Stanley Securities Ltd at a price of 48.50 pence per share resulting in an aggregate consideration of around £196 million.

''BSkyB intends to retain its residual 7.5 per cent investment in ITV for the medium term and to remain a committed shareholder of ITV,'' the statement said.