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Sky admits defeat on ITV sale
Rose Major ©RapidTVNews | 08-02-2010
BSkyB has given up its fight against the partial sale of its ITV stake. Morgan Stanley will place a 10.4% stake, reportedly at 48.5p-49.5p per share, a few pence down on ITV’s closing price at 51p prior to the announcement.
On the up side, the sale will raise around £200 million for BSkyB, but reduce its stake to below 7.5%, the level set by the courts.
The London Court of Appeal ruled on Jan 21 that the stake bought expensively for £940m back in November 2006, must be sold down to 7.5%, as Sky’s holdings in ITV were not in the public interest. The potential £500m loss has already been written down by Sky.
Sky decided not to mount a further appeal to the UK’s Supreme Court.
© Rapid TV News 2010
