BSkyB to concede ITV voting rights

Source: Technology Digital

Date :30/10/2007 08:47:17

BSkyB has offered to give up a slice of its voting rights in ITV in an attempt to hold on to its controversial 17.9 percent stake in the broadcaster

The group said in a letter to the Competition Commission - made public for the first time late last week - that it was prepared to concede three percent of its voting rights to allay fears over its influence on ITV's strategy.

Plan

The broadcasting giant's proposal would see the three percent stake held in a trust, with a "respected institutional trustee" able to vote independently.

BSkyB, which spent £940 million on the ITV stake last November in a surprise move, said in the letter that its offer was a "structural solution".

It would "require no monitoring by the Office of Fair Trading (OFT) or the Competition Commission, since the exercise of the voting rights attributable to the shares held by Sky would be transparent to ITV and to the market", added the group.

The concession follows the Competition Commission's provisional findings published earlier this month, which deemed the 17.9 percent holding in ITV as operating "against the public interest".

The Commission said it believed BSkyB would be able to influence ITV's key strategic decisions, particularly relating to investment.

Verdict

A final decision on what action needs to be taken to address the public interest finding will be made by Business, Enterprise and Regulatory Reform Secretary John Hutton.

Mr Hutton has a month from when the Commission sends over its final findings and recommendations for solutions, due before Christmas.

BSkyB could face the prospect of having to sell or reduce its stake in ITV.

October 30, 2007

Related Links

BSkyb

ITV