ITV expresses concern over Sky stake

ITV has told regulators that Sky's 17.9% stake in the broadcaster may not be in the interests of all its shareholders.

The company revealed this morning that it has made a submission in which it outlined a concern that Sky, as a competitor to ITV, could use its 17.9% stake to block a resolution requiring a 75% majority of shareholders.

A statement from ITV executive chairman Michael Grade said:

"On 17 November 2006, British Sky Broadcasting acquired a 17.9% holding in ITV at a price of 135 pence per share. At the present time, BSkyB's holding is subject to regulatory reviews by Ofcom, the OFT and the DTI in relation to both competition and broader public interest issues; Ofcom is also separately reviewing 'change of control' under the Broadcasting Act. ITV has made submissions in response to the authorities, at their request, and has noted the concern that BSkyB (as a competitor) may be able, with the size of its holding and given historic voting patterns, to block a shareholder resolution requiring a 75% majority and that this may not be in the interest of ITV's shareholders as whole. The authorities will consider whether there should be any form of restriction on BSkyB in respect of their holding in the Company. The Board will continue to act in the interests of all shareholders."