UK OFT launches formal investigation into BSkyB'S ITV stake purchase |
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Published
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Fri, 12 Jan 2007 12:44
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LONDON (AFX) - The UK's Office of Fair Trading has launched a formal investigation into satellite giant British Sky Broadcasting's recent purchase of a 17.9 pct stake in struggling broadcaster ITV.In a statement, the OFT said it would examine BSkyB's shock November move to establish whether it constitutes a are levant merger situation' under the provisions of the 2002 Enterprise Act.If so, the OFT said it would then try to determine whether competition in the TV market would be sufficiently reduced to merit an investigation by the Competition Commission.Media regulator Ofcom is also looking into BSkyB's 940 mln stg deal, which effectively scuppered cable group NTL's attempts to buy ITV, to see whether it amounted to a change of control.NTL's largest shareholder, Richard Branson, has repeatedly asked the OFT and Ofcom to intervene in what he termed a 'blatant attempt to distort competition'.Under the UK media industry cross-ownership rules, the Rupert Murdoch-controlled company is not allowed to own more than 20 pct of ITV.Ofcom, however, could ask BSkyB to reduce its holding in its forthcoming report.simon.duke@afxnews.comsd/ksCOPYRIGHTCopyright AFX News Limited 2006. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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