ITV Urges Sky to Offload Stake

LONDON, November 7: In a submission to the Competition
Commission, ITV has said that BSkyB should be made to sell its 17.9-percent
stake in the British commercial broadcaster.

Sky acquired the stake last November and has come under
pressure from British regulators, concerned that its influence over ITV would
inhibit competition in the market.

"The only effective and comprehensive remedy is a
complete divestment," ITV said in the submission to the Competition
Commission, which is set to provide a ruling on the acquisition later this
year.

In an attempt to convince the Commission, Sky has offered to
place voting rights for 3 percent of ITV in a trust. "The remaining
shareholding of 14.9 percent is clearly insufficient, on any reasonable basis
of calculation, to block a special resolution," BSkyB said.

ITV maintains that even a
further divestment, to 9.9 percent, would not “satisfactorily address” the
Commission’s concerns. ITV further notes a reduction to 4.9 percent would not
fully alleviate the situation, but “would at least begin to address ITV’s
concerns and would have a sounder analytical base than a reduction to 9.9
percent.”

—By Mansha Daswani