Ruling on BSkyB’s stake in ITV due today


January 21, 2010

Today is the day when the Court of Appeal makes its decision on the case involving the purchase of ITV shares by satellite rival BSkyB back in 2006.

It is four years ago since BSkyB purchased 17.9 per cent of ITV and this will be the fourth appeal decision to be made.

In the main, it looks like BSkyB will have to reduce its holding down to 7.5 per cent, which is what the competition commission wanted.

But for BSkyB there is more than pride at stake here.

In 2006 the broadcaster paid 135p for the shares at a total of around £940 million.

Currently the ITV share price is around 60p meaning a huge loss for BSkyB.

BSkyB is expected to appeal once again should the decision go against them, although it is doubtful if the case could go any further.






 

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