Menu
20/12/2007
Regulator Recommends BSkyB Downsize Stake In ITV
The Competition Commission has suggested that BSkyB be forced to sell its substantial 17.9% stake in ITV as it currently restricts competition in the TV market.
The regulator also recommended that the Secretary of State, John Hutton should seek undertaking from BSkyB that it would not seek representation on ITV’s board.
The Competition Commissions’s report published today by the Department for Business Enterprise and Regulatory reform found that the acquisition “may be expected to operate against the public interest.”
The report recommended that a reduction in BSkyB’s stake to below 7.5% would be adequate and was the “least intrusive” option.
“We recognise that this assessment was not solely a matter of calculation or quantitative analysis, but was in part a matter of judgement. However, we were confident that, below this level, there would be no realistic prospect that BSkyB would be able to exercise material influence in the ways that we had to be identified,” the report stated.
Mr Hutton is required to accept the Competition Commission’s findings but has discretion in making decisions on the effects on media plurality and also on any appropriate remedial measures.
The Competition Commission launched its inquiry into Sky’s shareholding in May after Ofcom and the Office of Fair Trading concluded that the stake raised “significant” competition and public interest concerns.
BSkyB maintains that it has not sought to influence ITV and that the stake in ITV was an investment.
However, Virgin Media has accused BSkyB of effectively blocking an ITV takeover and said in a statement following the report: “We’re pleased that the Competition Commission has acknowledged the serious problems raised by Sky’s stake in ITV and, in particular, its potential to distort the competition landscape.”
ITV said in a statement that it “welcomed the publication of the Competition Commission’s report today and awaits a final decision by the secretary of state in due course.”
Any “interested” part that wished to make any further representations on the report has until January 7 to file a submission.
Sky paid £940 million for the stake in November last year and may stand to lose up to £180 million in the sell off.
The move re-opens the door for Virgin Media and other potential buyers to attempt a merger with the commercial channel.
(DS)
The regulator also recommended that the Secretary of State, John Hutton should seek undertaking from BSkyB that it would not seek representation on ITV’s board.
The Competition Commissions’s report published today by the Department for Business Enterprise and Regulatory reform found that the acquisition “may be expected to operate against the public interest.”
The report recommended that a reduction in BSkyB’s stake to below 7.5% would be adequate and was the “least intrusive” option.
“We recognise that this assessment was not solely a matter of calculation or quantitative analysis, but was in part a matter of judgement. However, we were confident that, below this level, there would be no realistic prospect that BSkyB would be able to exercise material influence in the ways that we had to be identified,” the report stated.
Mr Hutton is required to accept the Competition Commission’s findings but has discretion in making decisions on the effects on media plurality and also on any appropriate remedial measures.
The Competition Commission launched its inquiry into Sky’s shareholding in May after Ofcom and the Office of Fair Trading concluded that the stake raised “significant” competition and public interest concerns.
BSkyB maintains that it has not sought to influence ITV and that the stake in ITV was an investment.
However, Virgin Media has accused BSkyB of effectively blocking an ITV takeover and said in a statement following the report: “We’re pleased that the Competition Commission has acknowledged the serious problems raised by Sky’s stake in ITV and, in particular, its potential to distort the competition landscape.”
ITV said in a statement that it “welcomed the publication of the Competition Commission’s report today and awaits a final decision by the secretary of state in due course.”
Any “interested” part that wished to make any further representations on the report has until January 7 to file a submission.
Sky paid £940 million for the stake in November last year and may stand to lose up to £180 million in the sell off.
The move re-opens the door for Virgin Media and other potential buyers to attempt a merger with the commercial channel.
(DS)
Related UK National News Stories
Click here for the latest headlines.
06 December 2006
NTL Drops ITV Bid
NTL has dropped plans to bid for ITV after its £4.7bn proposal was rejected by the broadcaster. As expected by industry analysts rival BSkyB has swooped to take a blocking stake in ITV. According to news sources the decision has been welcomed by major shareholders in the cable group, who are keen for NTL to focus on its recent acquisitions.
NTL Drops ITV Bid
NTL has dropped plans to bid for ITV after its £4.7bn proposal was rejected by the broadcaster. As expected by industry analysts rival BSkyB has swooped to take a blocking stake in ITV. According to news sources the decision has been welcomed by major shareholders in the cable group, who are keen for NTL to focus on its recent acquisitions.
18 September 2008
Competition Rules To Change For Banking Merger
Legislation is to be modified to make-way for one of the biggest banking mergers in recent times. The Chancellor has confirmed the Government will amend current competition laws to allow the merging of Lloyds TSB and HBOS. Alistair Darling said the move would go ahead in the interest of UK financial stability.
Competition Rules To Change For Banking Merger
Legislation is to be modified to make-way for one of the biggest banking mergers in recent times. The Chancellor has confirmed the Government will amend current competition laws to allow the merging of Lloyds TSB and HBOS. Alistair Darling said the move would go ahead in the interest of UK financial stability.
21 November 2006
ITV rejects merger approach by NTL
The Board of ITV has rejected a merger proposal from NTL as one with "little strategic logic." In a statement, the Board said it believed that "whereas there is obvious appeal to NTL in gaining control of ITV's substantial and successful business, from ITV's perspective there is little, if any, strategic logic for ITV to combine with NTL.
ITV rejects merger approach by NTL
The Board of ITV has rejected a merger proposal from NTL as one with "little strategic logic." In a statement, the Board said it believed that "whereas there is obvious appeal to NTL in gaining control of ITV's substantial and successful business, from ITV's perspective there is little, if any, strategic logic for ITV to combine with NTL.
19 March 2009
CC Orders BAA To Sell Two Airports
The Competition Commission (CC) has ordered BAA to sell both Gatwick and Stansted as well as either Edinburgh or Glasgow. In its final report on BAA's ownership of seven UK airports, the CC also stipulates that BAA must sell all three airports within two years.
CC Orders BAA To Sell Two Airports
The Competition Commission (CC) has ordered BAA to sell both Gatwick and Stansted as well as either Edinburgh or Glasgow. In its final report on BAA's ownership of seven UK airports, the CC also stipulates that BAA must sell all three airports within two years.
13 May 2004
SMG settles differences with ITV over digital rights
Following the recent sale of the Scottish Media Group's (SMG) 25% GMTV stake to ITV plc, the two companies have reached an agreement on the use of the ITV brand name and the use by ITV plc of SMG's digital spectrum in Scotland.
SMG settles differences with ITV over digital rights
Following the recent sale of the Scottish Media Group's (SMG) 25% GMTV stake to ITV plc, the two companies have reached an agreement on the use of the ITV brand name and the use by ITV plc of SMG's digital spectrum in Scotland.
-
Northern Ireland WeatherToday:It will be cloudy again throughout the day. Mainly dry in the morning, but patchy drizzle in places, becoming more widespread and persistent in the afternoon. Freshening southwesterly winds. Maximum temperature 12 °C.Tonight:Cloudy with a spell of heavy rain pushing south through late evening and the early hours, followed by some clear spells. Minimum temperature 6 °C.
