BSkyB considering next steps after losing appeal against forced ITV divestment

The British appeal court has ruled against BSkyB (LSE: BSY) (’Sky’) in relation to the forced reduction of its shareholding in ITV (LSE: ITV), and this is the fourth ruling against Sky in this matter. The FTSE100 constituent bought a 17.9% stake in ITV in 2006. In December 2007 the Competition Commission ruled that the shareholding in its competitor was against public interest and ordered Sky to reduce its holding to 7.5%.

Following subsequent share price movements since the initial purchase, Sky is set to lose approximately £500 million when it sells the shares.

In a brief statement to its investors Sky said it will review the judgement carefully and consider its next steps in due course. The only remaining legal recourse available to Sky would be to take the case to the Supreme Court. During the two years in which it has been appealing the ruling, the media company has already written off the potential losses.

At the time of the initial transaction, many deemed the controversial share purchase as a strategic move to prevent Richard Branson’s Virgin Media from acquiring ITV, however Sky maintains the shareholding represents a long term investment.  http://www.proactiveinvestors.co.uk/companies/news/12477/bskyb-considering-next-steps-after-losing-appeal-against-forced-itv-divestment--12477.html