BT end link with BSkyB

Telecoms giant BT today ended its five-year involvement with BSkyB’s interactive television arm by selling shares in the group for £120m (€188m).

BT placed 20.8 million shares in the City through stockbroker Credit Suisse First Boston in a price analysts believed to be 587p.

The deal follows an agreement BSkyB signed in July 2000 to buy out its partners in the interactive venture, formerly known as Open.

BSkyB agreed two years ago to award BT shares at staged intervals and the final 20.8 million were issued to the telecoms giant today.

The broadcaster has also issued 12.8 million shares to HSBC bank and 9.6 million to Japanese firm Matsushita today under the agreement.

The interactive service allows viewers to shop and bank via the TV, play games, send e-mails and cast votes in on-air discussions.

BT began work on the service with BSkyB in 1997 and it now forms part of Sky Active, which also includes a betting operation.

Quarterly results from the broadcaster on Friday showed interactive revenues were £44m (€69m) in the three months to September 30.

BT has already raised around £130m (€204m) from two separate placings of BSkyB shares over the past 17 months, enough to cover its original investment.

Under today’s agreement BT has waived its right to receive any more shares if the interactive business’ market value hits £3bn (€4.71bn) in 2003.