BSkyB sells ITV shares at £348m loss

Date: Tuesday 09 Feb 2010

BSkyB has sold a 10.4% stake in struggling broadcaster ITV at a £348m loss following a two year legal battle to hang onto the shares.

The pay-TV group placed 404.4m ITV shares at 48.50p each, well blow the 135p per share it bought them for in November 2006.

BSkyB said it intends to retain its residual 7.5% investment in ITV for the 'medium term'.

The sale comes after the group lost its latest appeal over the forced sale of most of its stake last month. The satellite broadcaster was ordered by the Competition Commission to reduce it on the grounds that its sizeable presence on its rival's share register could operate against the public interest.

BSkyB bought the stake to block an anticipated 122p a share takeover approach for ITV by NTL, now Virgin Media. The Commission's decision was later upheld by John Denham, the Business Secretary and also by the Competition Appeal Tribunal, in September 2008.

BSkyB said at the time that it may still appeal to the Supreme Court for a final decision.

Analysts at broker Daniel Stewart say the disposal crystallises a notional £348m loss, but as Sky had already written down the value of its ITV stake to 20p a share, this should be credited as an exceptional gain in its full-year accounts.

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