BSKYB Loses ITV Stake Court Appeal Bid
# Jan 21, 10:45 AM by Mick
Interesting news just out, BSKYB this morning, has lost it’s court appeal bid to block a forced 10.4% sale of the broadcasters 17.9% stake in ITV. BSKYB acquired it’s 17.9% stake in ITV in November 2006, a move which thwarted a takeover attempt by Virgin Media (ntl:Telewest – as it was known at the time).
After UK regulators got involved after concerns over “Competition implications”, in September 2008, The Competition Appeal Tribunal ordered BSKYB to sell a 10.4% potion of it’s entire 17.9% stake in ITV. BSKYB were then to appeal to the courts in a bid to block the forced sale.
It’s interesting to note though that the delay in this appeal, may see BSKYB cut it’s losses considerably since the Competition Appeal Tribunal made the ruling on Sept. 29th 2008, ITV shares were worth 41 pence. As of yesterday, they were worth 57.8 pence, a rise of 41%. The broadcaster though could still make heavy losses since it’s initial Â£940 Million investment in November 2006.
BSKYB is said to be not making any hasty decisions of todays judgement but may be reviewing it and then deciding on what next steps to take. They have the option if they want to take this to the Supreme court.