ITV buyout attempt imminent?

Sky could this week be told to sell most of its stake in ITV, which may prompt takeover bids for the entire company, according to market speculation.

ITV's share price reached an all-time low of 38.7p last week but rose to 42.6p on Friday on rumours of a possible buyout. This morning the price was back down to 39.7p.

European press reports suggested Silvio Berlusconi's Mediaset firm, Five owner RTL, US-Israeli media entrepreneur Haim Saban and private equity firms were interested.

Sky is waiting for the result of a Competition Appeal Tribunal which will decide whether it must sell most of its 17.9% holding in ITV. The company is seeking to overturn the Government's ruling that it must reduce its stake to a maximum of 7.5% but, if it is refused, Sky is likely to sell all its shares.

According to reports, the satellite broadcaster has been in discussions with potential buyers who are looking to take over ITV entirely.

The value of Sky's holding has reduced dramatically since it was bought in November 2006, but has prevented a potential merger with NTL/Virgin Media, which was the perceived intention of the move.