Sky 'to sue if forced to sell ITV stake'

[BGonaSTICK]

An un-named BSkyB non-executive director said that the broadcaster might sue if it is forced into a loss-making sale of its 17.9% stake in ITV. The Competition Commission has provisionally ruled that the stake - purchased last November for £940m - restricted competition and operated against the public interest.

Since the purchase at 135p per share, ITV's share price has fallen to 105p, which would leave Sky with a £200m loss were it to sell its entire stake. The un-named Sky director told MediaGuardian that Sky would be "bound to" seek legal redress if forced to sell at a loss.

Competition Commission chairman Peter Freeman told The Guardian he would prefer Sky to sell its entire stake since if it remained a shareholder it would have to agree to "behavioural remedies" which would add to the "burden of regulation".

A Sky spokesman said the pay-TV giant would "continue to engage with the commission during the remainder of this process". ITV said it welcomed the provisional findings and would be reviewing the commission's possible remedies.

Source: The Guardian

[BGonaSTICK]

Sky have a valid case here as far as I'm concerned - they broke no rules by making the original investment, so compensation could well be owing. Buy by who?

It would be a very interesting scenario, and could clearly prejudice any potential ruling, which is extremely embarrassing for all involved.

You've got to admire the way that Sky always have an ace up their sleeve. They play the game so very well.

[madrat]

What I don't understand is on the news reports they said Sky's bid blocked Virgin from getting the ITV shares, then they show lots of people saying how bad it would be for a broadcaster to own part of ITV, now correct me if I'm wrong but arnt Virgin a broadcaster as well, so whats the difference :? Do you ever get the feeling that everyone has a grudge against sky for being a successfully company.

[BGonaSTICK]

The fact is that they have been allowed to become too successful to the point where the market forces principle doesn't work. The Murdoch's have a virtual monopoly on public information, and it's unhealthy.

At least when the BBC had a monopoly it was blatantly obvious.

[madrat]

At least when the BBC had a monopoly it was blatantly obvious

:roflmao:

There is a lot of truth about the monopoly on information, but the main problem is people believe what they see or read without questioning it first. If people stopped and thought and did a bit of research from different points of view things would be much better.