Sky applies to appeal ITV ruling

BSkyB has applied for permission to appeal a ruling that it must reduce its 17.9% stake in ITV to below 7.5%.

In September the Competition Appeal Tribunal (CAT) reaffirmed the previous decisions of the Competition Commission and business secretary John Hutton on the issue.

Now the company intends to take the case to the Courts of Appeal, a move requiring approval from the CAT.

BSkyB purchased 696 million shares in the terrestrial broadcaster in October 2006 at a price of 135p per share. ITV's share price currently stands at around 35p, representing a loss of around £700 million.

"I think some people who are talking about tactics and why we would want to go to further appeal are forgetting that in this case we believe we are right," a senior Sky source told the Financial Times. "We think there is no reason to believe that this stake affects competition in the UK market and we believe that the decision as it stands affects our freedom to invest."