Sky loses appeal over ITV stake

Broadcasting giant BSkyB today lost its appeal against the UK government’s decision to force it to reduce its controversial 17.9% stake in ITV.

Sky lodged a legal challenge in February against a Competition Commission finding that the group’s ITV shareholding gave it influence over ITV’s strategy in a way that restricted the market.

That ruling was accepted by UK Business Secretary John Hutton, who ordered the group to ditch more than half the holding – down to below 7.5%.

Sky has taken a substantial hit on the value of its ITV shareholding, which has plummeted in value since being bought for £940m (€1.1m).

Today’s decision by the Competition Appeal Tribunal is the latest twist in a long-running saga for ITV.

It had been in the sights of the then cable firm NTL – now Virgin Media – until Sky’s stake purchase in November 2006 scuppered hopes of a tie-up.