BSkyB takes a £348 million loss on ITV


February 10, 2010

At one point it looked as if the satellite broadcaster BSkyB would take the competition commission’s decision that it should reduce its holding rival broadcaster ITV to an appeal, but yesterday the company disposed of 404 million shares in ITV.

The stake represents 10.4 per cent, which lowers BSkyB’s holding in ITV to just under the required level of 7.5 per cent.

The shares were sold to Morgan Stanley at 48.5p per share and were then sold on to institutions at a price of 49.5p per share.

This now ends the legal case that started back in 2006 when BSkyB paid 135p per share for the stake, and has resulted in a loss of around £348 million, but in the long term this deal stopped ITV from being taken over by Virgin Media and therefore may be seen as a worthwhile investment.






 

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