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BSkyB may have to sell ITV shares BSkyB 'should sell shares in ITV'
(10 minutes later)
The Competition Commission has recommended that BSkyB should be forced to sell some of its 17.9% stake in rival broadcaster ITV.The Competition Commission has recommended that BSkyB should be forced to sell some of its 17.9% stake in rival broadcaster ITV.
The regulator's report says that BSkyB should either sell all of its shares or cut its stake to below 7.5% and promise not to take a seat on ITV's board.The regulator's report says that BSkyB should either sell all of its shares or cut its stake to below 7.5% and promise not to take a seat on ITV's board.
BSkyB and ITV both said they are studying the report and awaiting a final decision from the government.
Business Secretary John Hutton has 30 days to comment on the report.
BSkyB says that it has not sought to influence ITV and bought the shares as an investment.BSkyB says that it has not sought to influence ITV and bought the shares as an investment.
But Virgin Media accused BSkyB of effectively blocking an ITV takeover.But Virgin Media accused BSkyB of effectively blocking an ITV takeover.
John Hutton, Secretary of State for Business, Enterprise and Regulatory Reform, has 30 days to comment on the report's findings.
'Reduce investment''Reduce investment'
The commission found that BSkyB's stake would be big enough to allow it to block special resolutions and that it "would limit ITV's strategic options, for example its ability to raise funds".The commission found that BSkyB's stake would be big enough to allow it to block special resolutions and that it "would limit ITV's strategic options, for example its ability to raise funds".
It also decided that there would be an effect on ITV's programming.It also decided that there would be an effect on ITV's programming.
"Given its interests as a competitor and despite its interests as a shareholder, we believed that BSkyB would have the incentive to reduce ITV's investment in content," the report said."Given its interests as a competitor and despite its interests as a shareholder, we believed that BSkyB would have the incentive to reduce ITV's investment in content," the report said.
But in terms of news coverage, the report concluded that BSkyB's stake would not allow it to exert significant influence over ITV's news output or over ITN, in which ITV holds a 40% stake.But in terms of news coverage, the report concluded that BSkyB's stake would not allow it to exert significant influence over ITV's news output or over ITN, in which ITV holds a 40% stake.
BSkyB said in a statement: "The next phase of this process lies with the Secretary of State. We will be making representations to him in due course."BSkyB said in a statement: "The next phase of this process lies with the Secretary of State. We will be making representations to him in due course."
A statement from ITV said: "ITV welcomes the publication of the Competition Commission's report today and awaits a final decision by the Secretary of State in due course."A statement from ITV said: "ITV welcomes the publication of the Competition Commission's report today and awaits a final decision by the Secretary of State in due course."